Littelfuse Inc (LFUS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 100,190 | 259,485 | 373,306 | 283,806 | 129,986 |
| Total stockholders’ equity | US$ in thousands | 2,413,610 | 2,480,170 | 2,211,380 | 1,893,520 | 1,608,770 |
| ROE | 4.15% | 10.46% | 16.88% | 14.99% | 8.08% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $100,190K ÷ $2,413,610K
= 4.15%
ROE (Return on Equity) is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profit from the shareholders' equity. Analyzing Littelfuse Inc's ROE data from 2020 to 2024 reveals fluctuations in the company's ability to generate returns for its shareholders.
In 2020, Littelfuse Inc's ROE was 8.08%, indicating that the company generated $8.08 in net income for every $100 of shareholders' equity. Over the following years, the ROE increased significantly to 14.99% in 2021 and further to 16.88% in 2022, reflecting improved profitability and efficiency in the utilization of equity. The growth in ROE suggests that the company was able to enhance its profitability and generate higher returns for its shareholders.
However, in 2023, Littelfuse Inc experienced a decline in its ROE to 10.46%, indicating a decrease in profitability relative to the previous year. This decline may raise concerns about the company's ability to maintain its profitability levels or efficiently utilize its equity to generate returns.
By the end of 2024, Littelfuse Inc's ROE dropped further to 4.15%, marking a significant decrease from previous years. This could signal potential challenges or issues impacting the company's profitability and efficiency in generating returns for its shareholders.
Overall, the trend in Littelfuse Inc's ROE from 2020 to 2024 demonstrates fluctuations in the company's profitability and efficiency in utilizing shareholders' equity. Investors and stakeholders should closely monitor these changes and assess the underlying factors influencing the company's ROE performance to make informed decisions.
Peer comparison
Dec 31, 2024