Kenvue Inc. (KVUE)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,030,000 | 1,064,000 | 1,119,000 | 1,491,000 | 1,664,000 |
| Total stockholders’ equity | US$ in thousands | 9,668,000 | 10,644,000 | 10,178,000 | 10,621,000 | 11,211,000 |
| ROE | 10.65% | 10.00% | 10.99% | 14.04% | 14.84% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,030,000K ÷ $9,668,000K
= 10.65%
Based on the provided data, Kenvue Inc.'s return on equity (ROE) has shown a fluctuating trend over the past year. In December 2023, the ROE stood at 14.84%, indicating that the company generated a return of 14.84% on each unit of shareholder equity.
Subsequently, the ROE decreased to 14.04% in March 2024, followed by a further decline to 10.99% in June 2024. The downward trend continued with ROE dropping to 10.00% in September 2024. However, there was a slight improvement in December 2024, with ROE climbing to 10.65%.
Overall, the trend suggests that Kenvue Inc. may be facing challenges in efficiently utilizing shareholder equity to generate profits. It is important for the company to analyze the factors contributing to the fluctuating ROE and implement strategies to enhance profitability and shareholder value in the future.
Peer comparison
Dec 31, 2024