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.