MSA Safety (MSA)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	58,583	179,630	21,340	124,077	137,998
Total stockholders’ equity	US$ in thousands	966,802	923,741	834,388	839,201	725,800
ROE		6.06%	19.45%	2.56%	14.79%	19.01%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $58,583K ÷ $966,802K
= 6.06%

Over the past five years, MSA Safety Inc's return on equity (ROE) has experienced fluctuations.

In 2019, the ROE stood at 18.77%, indicating that for every dollar of shareholders' equity, the company generated a profit of 18.77 cents. Subsequently, ROE decreased to 14.96% in 2020, but then saw a significant improvement to 19.44% in 2022, reflecting better profitability relative to the prior year.

However, in 2021, there was a notable decline in ROE to 2.55%, signaling a substantial drop in profitability compared to the previous year. This downturn suggests that the company may have faced challenges or inefficiencies in its operations that impacted its ability to generate profits relative to shareholders' equity.

By the end of 2023, the ROE further decreased to 6.05%. While the ROE remained positive, the declining trend over the years indicates a potential need for MSA Safety Inc to enhance its efficiency in utilizing shareholders' equity to generate profits. It is essential for the company to evaluate its operational performance and strategic decisions to improve ROE, which is a key measure of profitability and shareholder value creation.