NewMarket Corporation (NEU)
Return on equity (ROE)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 388,864 | 279,538 | 190,908 | 270,568 | 254,286 |
Total stockholders’ equity | US$ in thousands | 1,077,060 | 762,407 | 762,129 | 759,824 | 683,098 |
ROE | 36.10% | 36.67% | 25.05% | 35.61% | 37.23% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $388,864K ÷ $1,077,060K
= 36.10%
NewMarket Corp.'s Return on Equity (ROE) has exhibited some fluctuations over the past five years. In 2023, the ROE stood at 35.98%, slightly lower than the previous year's figure of 36.55%. This indicates that for every dollar of shareholders' equity, the company generated a return of 35.98% in 2023.
Comparing the 2023 ROE to 2021, there was a significant improvement from 24.99% to 35.98%, showcasing the company's ability to enhance its profitability relative to the equity invested by shareholders. Similarly, when reviewing the 2020 and 2019 ROE figures of 35.55% and 37.16% respectively, NewMarket Corp. has historically performed well in generating returns for its shareholders.
Overall, NewMarket Corp. has generally maintained a healthy ROE above 24.99% over the past five years, indicating efficient utilization of shareholders' equity to generate profits. However, the slight dip in ROE from 2022 to 2023 warrants further analysis to understand the factors contributing to this change in profitability.
Peer comparison
Dec 31, 2023