KBR Inc (KBR)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 375,000 -265,000 190,000 27,000 -63,000
Total stockholders’ equity US$ in thousands 1,453,000 1,383,000 1,620,000 1,669,000 1,580,000
ROE 25.81% -19.16% 11.73% 1.62% -3.99%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $375,000K ÷ $1,453,000K
= 25.81%

The return on equity (ROE) of KBR Inc has fluctuated over the past five years. In 2020, the ROE was negative at -3.99%, indicating that the company generated a net loss relative to shareholders' equity. However, there was a gradual improvement in 2021 and 2022, with ROE increasing to 1.62% and 11.73% respectively, suggesting a better utilization of shareholder funds to generate profits.

In 2023, there was a significant decline in ROE to -19.16%, which may indicate challenges or losses faced by the company during that period. Nonetheless, KBR Inc showed a remarkable recovery in 2024, with ROE surging to 25.81%, indicating strong profitability and efficient use of equity capital to generate returns for shareholders.

Overall, the fluctuation in KBR Inc's ROE over the past five years reflects varying financial performance and efficiency in generating profits relative to shareholders' equity. It would be essential for stakeholders to further investigate the factors behind these fluctuations to assess the company's financial health and profitability prospects.