Knowles Cor (KN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -237,800 | 72,400 | -430,100 | 150,400 | 6,600 |
| Total stockholders’ equity | US$ in thousands | 756,000 | 1,034,100 | 992,900 | 1,459,500 | 1,303,500 |
| ROE | -31.46% | 7.00% | -43.32% | 10.30% | 0.51% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-237,800K ÷ $756,000K
= -31.46%
Based on the data provided, Knowles Cor's return on equity (ROE) has displayed significant fluctuations over the five-year period.
In 2020, the ROE was at a very low level of 0.51%, indicating that the company may have had difficulty generating profit relative to its shareholder's equity. However, by the end of 2021, there was a substantial improvement in ROE to 10.30%, suggesting that the company made strides in efficiently utilizing its equity to generate returns.
The ROE took a sharp downturn by the end of 2022, plunging to -43.32%. This significant negative ROE indicates that Knowles Cor experienced heavy losses relative to its equity during that period. The rebound in 2023, with an ROE of 7.00%, suggests some recovery, but the company still struggled to achieve profitability in line with its equity.
By the end of 2024, the ROE fell sharply again to -31.46%, signaling a continued challenge in generating adequate returns on equity. Overall, the fluctuating ROE trends indicate potential profitability and operational efficiency issues that Knowles Cor may need to address to enhance its financial performance and create sustainable value for its shareholders.
Peer comparison
Dec 31, 2024