JBTMarel Corp (JBTM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 85,400 | 582,600 | 137,400 | 119,100 | 108,800 |
| Total stockholders’ equity | US$ in thousands | 1,544,200 | 1,488,900 | 905,400 | 750,200 | 637,100 |
| ROE | 5.53% | 39.13% | 15.18% | 15.88% | 17.08% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $85,400K ÷ $1,544,200K
= 5.53%
The return on equity (ROE) for JBTMarel Corp has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company's ROE stood at 17.08%, indicating a relatively healthy level of profitability relative to shareholders’ equity. In 2021, the ROE experienced a slight decline to 15.88%, which may reflect minor operational challenges or shifts in net profit margins, asset efficiency, or equity levels. This downward trend continued into 2022, with the ROE decreasing further to 15.18%, suggesting a potential stabilization at a lower profitability margin or increased equity base diluting returns.
However, a significant transformation occurred by the end of 2023, when the ROE surged to 39.13%. This substantial increase could be attributed to improved net income, better asset utilization, or a reduction in shareholders' equity in proportion to net profits, signifying a period of markedly enhanced profitability and operational efficiency. Conversely, in 2024, the ROE sharply declined to 5.53%. This dramatic reduction may be indicative of several factors, such as a decline in net income, an increase in equity that was not matched by earnings growth, or extraordinary expenses impacting profitability.
Overall, the company's ROE trend demonstrates periods of stability and impressive gains, notably in 2023, interspersed with periods of decline. The substantial spike in ROE in 2023 warrants further investigation to understand the underlying drivers, while the subsequent decrease in 2024 suggests a notable change in financial performance or capital structure that may impact stakeholder perceptions of the company's profitability and efficiency.
Peer comparison
Dec 31, 2024