nVent Electric PLC (NVT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 331,800 | 567,100 | 399,800 | 272,900 | -47,200 |
| Total stockholders’ equity | US$ in thousands | 3,237,600 | 3,142,100 | 2,731,700 | 2,496,100 | 2,409,800 |
| ROE | 10.25% | 18.05% | 14.64% | 10.93% | -1.96% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $331,800K ÷ $3,237,600K
= 10.25%
nVent Electric PLC's return on equity (ROE) has shown improvement over the years based on the data provided. The ROE was negative at -1.96% as of December 31, 2020, indicating that the company generated a net loss in relation to shareholder equity for that year. However, the ROE rebounded significantly to 10.93% by December 31, 2021, reflecting a positive return on equity for that period.
The trend continued with further growth in ROE to 14.64% by December 31, 2022, and a subsequent increase to 18.05% by December 31, 2023, indicating the company was generating substantial profits in comparison to the shareholder equity invested. However, there was a slight dip in ROE to 10.25% by December 31, 2024, which may imply a potential decrease in profitability relative to the equity base.
Overall, the increasing ROE figures suggest that nVent Electric PLC has been effectively utilizing shareholder equity to generate returns and improve its financial performance during the period under review. However, the slight decrease in ROE in the most recent year warrants further analysis to understand the factors contributing to this change.
Peer comparison
Dec 31, 2024