nVent Electric PLC (NVT)
Return on equity (ROE)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 576,000 | 576,500 | 578,400 | 567,100 | 470,900 | 458,800 | 425,800 | 399,800 | 308,100 | 289,000 | 275,300 | 272,900 | 253,000 | 40,000 | -400 | -47,200 | -48,800 | 149,800 | 184,900 | 222,700 |
| Total stockholders’ equity | US$ in thousands | 3,283,700 | 3,287,800 | 3,212,300 | 3,142,100 | 2,945,100 | 2,875,700 | 2,789,900 | 2,731,700 | 2,650,600 | 2,586,000 | 2,533,900 | 2,496,100 | 2,541,600 | 2,492,800 | 2,450,000 | 2,409,800 | 2,413,400 | 2,578,200 | 2,576,600 | 2,592,500 |
| ROE | 17.54% | 17.53% | 18.01% | 18.05% | 15.99% | 15.95% | 15.26% | 14.64% | 11.62% | 11.18% | 10.86% | 10.93% | 9.95% | 1.60% | -0.02% | -1.96% | -2.02% | 5.81% | 7.18% | 8.59% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $576,000K ÷ $3,283,700K
= 17.54%
nVent Electric PLC's return on equity (ROE) has shown a positive trend over the last few quarters, indicating the company's ability to generate profit from shareholders' equity. The ROE increased from 8.59% in March 2020 to 18.01% in March 2024 before slightly declining to 17.54% in September 2024. This upward trend suggests improving efficiency in utilizing shareholders' equity to generate profits.
The ROE exceeding 15% consistently from March 2023 to September 2024 reflects the company's capacity to deliver a strong return to shareholders. It is important to note the significant improvement in ROE since December 2020, where there was a negative ROE, indicating potential issues with profitability and efficiency during that period.
Overall, nVent Electric PLC's ROE performance indicates a positive financial outlook, demonstrating effective management of assets and equity capital to generate returns for shareholders. However, continuous monitoring is still crucial to ensure sustained growth and profitability.
Peer comparison
Sep 30, 2024