Minerals Technologies Inc (MTX)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 84,100 | 64,200 | 96,800 | 115,100 | 122,200 | 143,600 | 171,600 | 168,600 | 164,400 | 154,300 | 141,200 | 113,700 | 112,400 | 110,300 | 120,000 | 132,200 | 132,700 | 146,800 | 150,700 | 168,200 |
| Total stockholders’ equity | US$ in thousands | 1,652,000 | 1,589,100 | 1,626,500 | 1,622,800 | 1,579,500 | 1,502,000 | 1,543,400 | 1,562,000 | 1,539,300 | 1,506,300 | 1,499,700 | 1,464,000 | 1,460,800 | 1,438,100 | 1,406,500 | 1,379,800 | 1,402,700 | 1,402,700 | 1,390,900 | 1,393,500 |
| ROE | 5.09% | 4.04% | 5.95% | 7.09% | 7.74% | 9.56% | 11.12% | 10.79% | 10.68% | 10.24% | 9.42% | 7.77% | 7.69% | 7.67% | 8.53% | 9.58% | 9.46% | 10.47% | 10.83% | 12.07% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $84,100K ÷ $1,652,000K
= 5.09%
Minerals Technologies, Inc.'s return on equity (ROE) has shown a downward trend over the past eight quarters. In Q4 2023, the ROE was 5.09%, which was lower compared to the previous quarter's 4.04%. This decline indicates that the company's ability to generate profit from its equity has weakened. The ROE peaked at 11.12% in Q2 2022 but has since been on a downward trajectory.
The decreasing trend in ROE may suggest challenges in efficiently utilizing shareholder equity to generate profits. An ROE below 10% could indicate that the company is not maximizing its profitability relative to the equity invested by shareholders.
Investors and stakeholders should closely monitor the company's strategies and financial performance to assess its ability to improve and stabilize ROE in the future. Actions such as improving operational efficiency, managing costs, and increasing revenue streams may help Minerals Technologies, Inc. enhance its ROE and deliver better returns to shareholders.
Peer comparison
Dec 31, 2023