Knife River Corporation (KNF)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 201,677 | 199,105 | 197,656 | 176,563 | 182,872 | 136,877 | 89,879 | 71,605 | 72,915 |
| Total stockholders’ equity | US$ in thousands | 1,476,100 | 1,448,930 | 1,298,710 | 1,218,630 | 1,266,000 | 1,243,020 | 1,094,900 | 974,769 | 1,027,460 |
| ROE | 13.66% | 13.74% | 15.22% | 14.49% | 14.44% | 11.01% | 8.21% | 7.35% | 7.10% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $201,677K ÷ $1,476,100K
= 13.66%
Knife River Corporation's return on equity (ROE) has shown a positive trend over the specified period, starting from 7.10% as of December 31, 2022, and gradually increasing to 13.66% by the end of December 31, 2024. The consistent increase in ROE signifies improved profitability and efficiency in generating returns for its shareholders.
The company's ROE experienced significant jumps between September 30, 2023 (11.01%) and December 31, 2023 (14.44%), and again between March 31, 2024 (14.49%) and June 30, 2024 (15.22%). These sharp increases suggest enhanced utilization of shareholder equity, which may be attributed to various factors such as effective cost management, revenue growth, or asset utilization.
However, it is worth noting that there was a slight decline in ROE from the second to the third quarter of 2024, dropping from 15.22% to 13.74%. This decrease could indicate a temporary setback or a change in the company's financial operations affecting its profitability relative to its equity base.
Overall, Knife River Corporation's ROE performance demonstrates a positive trajectory, reflecting its ability to generate higher returns on the shareholders' equity invested in the business. Monitoring this ratio over time can provide insights into the company's financial health and efficiency in utilizing equity to drive profitability.
Peer comparison
Dec 31, 2024