Itron Inc (ITRI)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 239,105 96,923 -9,732 -81,255 -57,955
Total stockholders’ equity US$ in thousands 1,390,600 1,310,910 1,168,470 1,116,080 816,548
ROE 17.19% 7.39% -0.83% -7.28% -7.10%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $239,105K ÷ $1,390,600K
= 17.19%

Itron Inc's return on equity (ROE) has fluctuated significantly over the past five years. The company reported negative ROE figures in 2020 (-7.10%) and 2021 (-7.28%), indicating that its net income was insufficient to cover shareholder equity during these periods.

However, there seems to have been a turnaround in the company's performance as evidenced by the positive ROE figures in the subsequent years. In 2022, the ROE improved to -0.83%, suggesting a narrowing gap between net income and shareholder equity. By the end of 2023, Itron Inc's ROE further improved to 7.39%, indicating a more favorable return on equity for shareholders.

The most notable improvement was seen in 2024, with Itron Inc achieving an impressive ROE of 17.19%. This substantial increase signifies that the company's profitability and efficiency in generating returns for shareholders have significantly improved.

In conclusion, Itron Inc's return on equity has shown a positive trend over the past few years, reflecting improved financial performance and increasing shareholder value. It is crucial for the company to sustain this positive momentum and continue enhancing its operational efficiency to generate sustainable returns for its investors.