Kaiser Aluminum Corporation (KALU)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 47,200 | -29,600 | -18,500 | 28,800 | 62,000 |
| Total stockholders’ equity | US$ in thousands | 652,200 | 631,200 | 692,500 | 732,400 | 733,900 |
| ROE | 7.24% | -4.69% | -2.67% | 3.93% | 8.45% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $47,200K ÷ $652,200K
= 7.24%
Kaiser Aluminum Corp's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE improved to 7.22% from a negative figure in the previous two years. This indicates that the company generated a profit relative to its shareholders' equity, although at a relatively lower rate compared to 2019 when the ROE stood at 8.45%. The negative ROE figures in 2021 and 2022 suggest that the company was not efficiently utilizing its equity to generate profits during those years. Overall, Kaiser Aluminum Corp needs to focus on improving its ROE to enhance shareholder value and ensure sustainable long-term profitability.
Peer comparison
Dec 31, 2023