Enviri Corporation (NVRI)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -86,121 | -68,484 | -55,603 | -149,755 | -180,069 | -167,751 | -162,266 | -43,287 | -3,313 | 14,787 | -2,377 | -26,365 | -26,400 | 19,129 | 464,080 | 483,322 | 503,919 | 510,603 | 108,099 | 139,946 |
| Total stockholders’ equity | US$ in thousands | 523,151 | 563,721 | 577,492 | 569,457 | 569,442 | 574,518 | 593,324 | 722,808 | 748,160 | 695,536 | 693,503 | 659,974 | 657,154 | 714,292 | 715,179 | 710,853 | 741,580 | 705,740 | 300,716 | 287,023 |
| ROE | -16.46% | -12.15% | -9.63% | -26.30% | -31.62% | -29.20% | -27.35% | -5.99% | -0.44% | 2.13% | -0.34% | -3.99% | -4.02% | 2.68% | 64.89% | 67.99% | 67.95% | 72.35% | 35.95% | 48.76% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-86,121K ÷ $523,151K
= -16.46%
The return on equity (ROE) for Enviri Corp has been fluctuating over the past eight quarters, ranging from -31.62% in Q4 2022 to -5.98% in Q1 2022. The company experienced a significant decline in ROE in Q1 2023, with a value of -26.30%. This was followed by further reductions in Q2 and Q3 2023, with ROE values of -9.63% and -12.15% respectively. The most recent data for Q4 2023 shows a slight improvement in ROE to -16.46%, although the metric remains negative.
The negative ROE values indicate that Enviri Corp's profitability in relation to shareholders' equity has been poor during these periods. The downward trend in ROE from Q4 2022 to Q3 2023 suggests challenges in generating profits relative to the company's equity. Investors and stakeholders may be concerned about the company's ability to effectively use equity to generate returns.
Enviri Corp should closely examine its financial performance, efficiency in asset utilization, cost management, and revenue generation to improve its ROE in the future. Implementing strategies to boost profitability and enhance operational efficiency could help the company turn around its ROE performance and better reward shareholders for their investments.