nVent Electric PLC (NVT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 567,100 | 399,800 | 272,900 | -47,200 | 222,700 |
| Total stockholders’ equity | US$ in thousands | 3,142,100 | 2,731,700 | 2,496,100 | 2,409,800 | 2,592,500 |
| ROE | 18.05% | 14.64% | 10.93% | -1.96% | 8.59% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $567,100K ÷ $3,142,100K
= 18.05%
nVent Electric plc's Return on Equity (ROE) has shown a positive trend over the past five years. The company's ROE increased from -1.96% in 2020 to 18.05% in 2023, demonstrating a significant recovery and improvement in profitability and efficiency in generating returns for shareholders' equity. This indicates that the company has been able to utilize its equity more effectively to generate profits for its shareholders. The consistent increase in ROE from 2020 to 2023 suggests that nVent Electric plc has made strides in optimizing its capital structure and operational performance, which is a positive sign for investors as it reflects the company's ability to generate higher returns on the shareholders' investment.
Peer comparison
Dec 31, 2023