Matson Inc (MATX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 476,400 | 297,100 | 1,063,900 | 927,400 | 193,100 |
| Total stockholders’ equity | US$ in thousands | 2,652,000 | 2,400,700 | 2,296,900 | 1,667,400 | 961,200 |
| ROE | 17.96% | 12.38% | 46.32% | 55.62% | 20.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $476,400K ÷ $2,652,000K
= 17.96%
Matson Inc's return on equity (ROE) has depicted considerable variability over the past five years. The ROE stood at 20.09% as of December 31, 2020, indicating that for each dollar of shareholders' equity, the company generated a profit of 20.09 cents.
Over the subsequent years, the ROE exhibited a notable upward trend, reaching 55.62% by December 31, 2021, and further increasing to 46.32% by December 31, 2022. This surge suggests that Matson Inc effectively utilized shareholder funds to generate higher profits during these years.
However, the trend reversed in the following years, with the ROE decreasing to 12.38% by December 31, 2023, and further dropping to 17.96% by December 31, 2024. The declining trend could indicate challenges faced by the company in maintaining or enhancing its profitability relative to the level of shareholders' equity.
In conclusion, Matson Inc's ROE has displayed fluctuations, with periods of strong performance followed by declines. It is essential for the company to assess the factors contributing to these fluctuations and implement strategies to sustain and improve ROE in the future.
Peer comparison
Dec 31, 2024