Materion Corporation (MTRN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,888 | 95,702 | 85,990 | 72,474 | 15,462 |
| Total stockholders’ equity | US$ in thousands | 868,881 | 885,053 | 799,990 | 720,440 | 655,630 |
| ROE | 0.68% | 10.81% | 10.75% | 10.06% | 2.36% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,888K ÷ $868,881K
= 0.68%
Materion Corporation's return on equity (ROE) has shown varying trends over the years. In 2020, the ROE was 2.36%, indicating a relatively lower return for shareholders. However, there was a significant improvement by the end of 2021, with the ROE increasing to 10.06%. This suggests that the company was able to generate more profit relative to shareholders' equity, which is a positive sign of efficiency.
The trend continued in the following years, with ROE reaching 10.75% in 2022 and slightly increasing to 10.81% in 2023. This consistent performance indicates that Materion Corporation was effectively utilizing its equity to generate profits for shareholders.
However, there was a decline in ROE by the end of 2024, dropping to 0.68%. This significant decrease may raise concerns about the company's profitability and efficiency in that particular year.
Overall, Materion Corporation's ROE performance has been positive in the recent years, with the exception of the decline in 2024. It is essential for the company to analyze the factors contributing to this decline and take necessary steps to improve ROE in the upcoming periods.