Kadant Inc (KAI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 111,598 | 116,069 | 120,928 | 84,043 | 55,196 |
| Total stockholders’ equity | US$ in thousands | 847,127 | 773,702 | 653,849 | 563,936 | 495,359 |
| ROE | 13.17% | 15.00% | 18.49% | 14.90% | 11.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $111,598K ÷ $847,127K
= 13.17%
Based on the provided data, Kadant Inc's return on equity (ROE) has shown a positive trend over the years. In December 2020, the ROE stood at 11.14%, indicating that for every dollar of shareholders' equity invested, the company generated a return of 11.14%.
By December 2021, Kadant Inc was able to improve its ROE to 14.90%, demonstrating an enhancement in its profitability and efficiency in utilizing shareholders' equity. This upward trajectory continued in December 2022, with an ROE of 18.49%, reflecting a significant improvement in the company's ability to generate profits from the equity invested by shareholders.
However, in December 2023, there was a slight decrease in ROE to 15.00%, which could be due to various factors impacting the company's financial performance during that period. By December 2024, the ROE further decreased to 13.17%, indicating a decline in the company's profitability relative to the equity provided by shareholders.
Overall, Kadant Inc has shown a generally positive trend in ROE, with fluctuations in the later years. It is essential for stakeholders to monitor these changes closely to assess the company's financial health and efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2024