MasTec Inc (MTZ)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -49,949 | 33,354 | 328,831 | 322,848 | 392,334 |
| Total stockholders’ equity | US$ in thousands | 2,706,150 | 2,737,330 | 2,539,810 | 2,001,920 | 1,787,220 |
| ROE | -1.85% | 1.22% | 12.95% | 16.13% | 21.95% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-49,949K ÷ $2,706,150K
= -1.85%
MasTec Inc's Return on Equity (ROE) has shown a declining trend over the past five years. In 2023, the ROE was negative at -1.85%, indicating that the company generated a loss relative to its shareholders' equity. This is a significant decline compared to 2022 when the ROE was 1.22%.
The decreasing trend is also evident when comparing 2023 to the earlier years. In 2021, the ROE was relatively strong at 12.95%, but it decreased to 16.13% in 2020 and further declined to 21.95% in 2019. The decreasing ROE indicates that the company's ability to generate profits from its shareholders' equity has been weakening over time.
It is important for MasTec Inc to focus on improving its profitability and operational efficiency to reverse this trend and enhance shareholder value. Further analysis of the company's financial performance and strategic initiatives is recommended to understand the factors contributing to the declining ROE and identify areas for improvement.
Peer comparison
Dec 31, 2023