NewMarket Corporation (NEU)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	462,413	432,084	411,009	399,013	388,864	398,976	350,955	317,803	279,538	206,222	195,034	180,514	190,908	240,586	284,342	254,739	270,568	253,786	225,797	277,622
Total stockholders’ equity	US$ in thousands	1,461,580	1,364,290	1,235,350	1,152,290	1,077,060	971,943	892,740	821,800	762,407	667,376	721,335	760,090	762,129	772,773	849,210	810,355	759,824	723,526	635,285	639,249
ROE		31.64%	31.67%	33.27%	34.63%	36.10%	41.05%	39.31%	38.67%	36.67%	30.90%	27.04%	23.75%	25.05%	31.13%	33.48%	31.44%	35.61%	35.08%	35.54%	43.43%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $462,413K ÷ $1,461,580K
= 31.64%

NewMarket Corporation's Return on Equity (ROE) has shown fluctuations over the past few years. The ROE was relatively high in the first quarter of 2020 at 43.43%, indicating strong profitability generated from shareholders' equity. However, the ROE decreased slightly by the end of 2020 to around 35%, where it remained relatively stable until the second quarter of 2021.

From the third quarter of 2021 to the first quarter of 2022, there was a noticeable decline in ROE, dropping to around 23.75%. This decrease may suggest a decrease in profitability relative to the shareholders' equity during this period.

Subsequently, there was a gradual improvement in the ROE from the second quarter of 2022 until the third quarter of 2023, reaching a peak of 41.05%. This indicates that the company was able to generate more profits with the given equity during this period.

However, in the following quarters, the ROE began to decline again, reaching 31.64% by the end of 2024. Overall, NewMarket Corporation's ROE has shown variability over time, with periods of both strong profitability and downturns. This trend underscores the importance of closely monitoring the company's financial performance and management of equity to sustain and improve ROE in the future.