Enviri Corporation (NVRI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -127,973 | -86,121 | -180,069 | -3,249 | -26,341 |
| Total stockholders’ equity | US$ in thousands | 411,448 | 523,151 | 569,442 | 748,160 | 657,154 |
| ROE | -31.10% | -16.46% | -31.62% | -0.43% | -4.01% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-127,973K ÷ $411,448K
= -31.10%
Over the past five years, Enviri Corporation's return on equity (ROE) has shown a significant level of volatility, fluctuating from -31.62% in December 2022 to -0.43% in December 2021. The negative ROE figures indicate that the company's net income is insufficient to generate a positive return for its shareholders based on their equity investment.
The decreasing trend in ROE from 2022 to 2024 raises concerns about the company's profitability and efficiency in utilizing shareholder equity to generate profits. The negative ROE percentages suggest that Enviri Corporation may be facing challenges in generating profits relative to the amount of equity invested by shareholders.
Investors and stakeholders may view the declining ROE as a red flag and may question the company's management efficiency, operational performance, and overall financial health. It is essential for Enviri Corporation to analyze the factors contributing to its low ROE and implement strategies to improve profitability and enhance shareholder value in the future.