Knowles Cor (KN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,400 | -430,100 | 150,400 | 6,600 | 49,100 |
| Total stockholders’ equity | US$ in thousands | 1,034,100 | 992,900 | 1,459,500 | 1,303,500 | 1,288,500 |
| ROE | 7.00% | -43.32% | 10.30% | 0.51% | 3.81% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $72,400K ÷ $1,034,100K
= 7.00%
Knowles Corp's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the ROE stands at 7.00%, indicating an improvement from the negative ROE of -43.27% in 2022. This suggests a recovery in the company's profitability and efficiency in generating returns for its shareholders. The ROE of 10.30% in 2021 was notably higher, reflecting a period of stronger performance. The ROE had been minimal in 2020 at 0.51% and in 2019 at 3.81%, which could indicate challenges in those years in effectively utilizing shareholders' equity to generate profits. Overall, while the recent positive trend in ROE is promising, it is essential for Knowles Corp to sustain and potentially increase this metric in the future to demonstrate continuous improvement in profitability and efficiency.
Peer comparison
Dec 31, 2023