ITT Inc (ITT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 410,500 | 367,000 | 316,300 | 72,500 | 325,100 |
| Total stockholders’ equity | US$ in thousands | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 | 2,074,900 |
| ROE | 16.24% | 16.32% | 14.21% | 3.41% | 15.67% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $410,500K ÷ $2,528,200K
= 16.24%
ITT Inc's return on equity (ROE) has shown variability over the past five years. In 2023, the ROE stands at 16.24%, slightly lower than the 16.32% reported in 2022. The company experienced a significant increase in ROE from 2021 to 2022, indicating improved efficiency in generating profits from shareholders' equity.
Comparing the recent ROE figures to 2020 and 2019, where the ROE was 3.41% and 15.67% respectively, we observe a notable improvement in 2023 and 2022. This trend suggests that ITT Inc has strengthened its ability to generate returns on the equity invested by shareholders.
Despite the fluctuations, the company has generally maintained a healthy ROE above 10% in recent years, indicating efficient utilization of equity capital to generate profits. Investors may view the company positively for its ability to generate a satisfactory return on their investment in ITT Inc. The management should continue to focus on sustaining or improving ROE levels to ensure long-term value creation for shareholders.
Peer comparison
Dec 31, 2023