Enpro Industries (NPO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 22,200 | 205,100 | 177,900 | 177,600 | 38,300 |
| Total stockholders’ equity | US$ in thousands | 1,409,700 | 1,395,100 | 1,270,300 | 1,081,400 | 896,600 |
| ROE | 1.57% | 14.70% | 14.00% | 16.42% | 4.27% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $22,200K ÷ $1,409,700K
= 1.57%
The return on equity (ROE) for Enpro Inc has exhibited fluctuating trends over the past five years, with values ranging from 1.57% to 17.10%. In 2023, the ROE decreased significantly to 1.57% from 14.70% in 2022. This decline in ROE could indicate a decrease in the company's ability to generate profits relative to its shareholders' equity.
Comparing these values to the previous years, we observe that the ROE was relatively stable around 14% to 17% from 2020 to 2022, showing a strong performance during these years. However, in 2019, the ROE was notably lower at 4.32%.
The significant drop in ROE in 2023 raises potential concerns about the company's profitability and efficient utilization of shareholder funds. Further analysis should be conducted to understand the factors contributing to this decline in ROE and to determine potential strategies for improving the company's financial performance.