National Presto Industries Inc (NPK)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 34,559 | 20,699 | 25,654 | 46,958 | 42,220 |
| Total stockholders’ equity | US$ in thousands | 356,256 | 348,052 | 357,623 | 374,348 | 367,957 |
| ROE | 9.70% | 5.95% | 7.17% | 12.54% | 11.47% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $34,559K ÷ $356,256K
= 9.70%
National Presto Industries Inc's return on equity (ROE) has shown fluctuations in recent years. The ROE for the most recent year, ending December 31, 2023, stood at 9.70%, a modest increase from the prior year's 5.95%. However, it remains below the levels seen in 2020 and 2019, which were 12.54% and 11.47%, respectively. The ROE for 2021 was 7.17%.
The varying ROE figures indicate changes in how efficiently the company is generating profits from its shareholders' equity. A lower ROE suggests that the company is less effective in utilizing equity to generate profits compared to previous years. It is important for investors to assess the underlying factors contributing to these changes in ROE to understand the company's financial performance and its ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2023