NewMarket Corporation (NEU)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 462,413 | 388,864 | 279,538 | 190,908 | 270,568 |
| Total stockholders’ equity | US$ in thousands | 1,461,580 | 1,077,060 | 762,407 | 762,129 | 759,824 |
| ROE | 31.64% | 36.10% | 36.67% | 25.05% | 35.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $462,413K ÷ $1,461,580K
= 31.64%
NewMarket Corporation's return on equity (ROE) experienced fluctuations over the five-year period from 2020 to 2024. The ROE stood at 35.61% in December 31, 2020, then decreased to 25.05% by December 31, 2021. Subsequently, the ROE demonstrated an upward trend, reaching 36.67% by December 31, 2022, and remaining relatively stable at 36.10% by December 31, 2023. However, there was a slight decline in ROE to 31.64% by December 31, 2024.
The fluctuations in ROE could be indicative of changes in the efficiency of NewMarket Corporation in generating profits from shareholders' equity over the years. The downward trend from 2021 to 2022 suggests potential challenges or adjustments within the company that impacted its profitability metrics. The subsequent improvement in ROE from 2022 to 2023 may indicate successful strategic initiatives or operational improvements implemented by the company. The slight decline in 2024 suggests the need for continuous monitoring and evaluation of factors influencing profitability.
Overall, NewMarket Corporation's ROE performance reflects a mix of positive and negative trends, highlighting the importance of ongoing analysis and management of factors influencing the company's financial performance.
Peer comparison
Dec 31, 2024