Enpro Industries (NPO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,900 | 22,200 | 3,900 | 177,900 | -23,300 |
| Total stockholders’ equity | US$ in thousands | 1,428,600 | 1,409,700 | 1,395,100 | 1,266,600 | 1,078,500 |
| ROE | 5.10% | 1.57% | 0.28% | 14.05% | -2.16% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $72,900K ÷ $1,428,600K
= 5.10%
Enpro Industries' return on equity (ROE) has demonstrated a mixed performance over the years.
In 2020, the company reported a negative ROE of -2.16%, indicating that it was not generating significant returns for its shareholders relative to their equity investments. However, by the end of 2021, Enpro Industries showed a significant improvement in ROE, reaching 14.05%. This positive change suggests that the company effectively leveraged its equity to generate profits.
The following two years, 2022 and 2023, saw a decline in ROE to 0.28% and 1.57%, respectively. These lower percentages may imply that Enpro Industries faced challenges in efficiently utilizing its equity to generate returns during those periods.
By the end of 2024, the company's ROE improved to 5.10%, indicating a positive trend in its profitability and efficiency in utilizing shareholders' equity.
Overall, Enpro Industries' ROE has displayed fluctuations over the years, with a mix of positive and negative performances. It is crucial for the company to focus on sustaining or improving ROE to ensure long-term value creation for its shareholders.