Newmont Goldcorp Corp (NEM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -2,494,000 | -429,000 | 1,166,000 | 2,829,000 | 2,805,000 |
| Total stockholders’ equity | US$ in thousands | 29,027,000 | 19,354,000 | 22,022,000 | 23,008,000 | 21,420,000 |
| ROE | -8.59% | -2.22% | 5.29% | 12.30% | 13.10% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-2,494,000K ÷ $29,027,000K
= -8.59%
The return on equity (ROE) for Newmont Corp has shown a declining trend over the past five years. The ROE was at 13.10% in 2019, but it steadily decreased to 12.30% in 2020, 5.29% in 2021, and further dropped to -2.22% in 2022. The most recent ROE figure as of Dec 31, 2023, stands at -8.59%.
This downward trend in ROE indicates a decreasing ability of the company to generate profits from shareholders' equity. A negative ROE, as seen in 2022 and 2023, suggests that Newmont Corp may be operating with a net loss or facing financial distress that is impacting its profitability.
It is essential for Newmont Corp to analyze the reasons behind the declining ROE and take strategic actions to improve its profitability and efficiency in utilizing shareholders' equity to generate returns in the future.