nVent Electric PLC (NVT)
Return on equity (ROE)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 331,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,237,600 | 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 |
| ROE | 10.25% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $331,800K ÷ $3,237,600K
= 10.25%
nVent Electric PLC's Return on Equity (ROE) is a key financial metric that measures the profitability and efficiency of the company in generating profit from shareholders' equity. Analyzing the ROE trend over the quarters from March 31, 2020, to December 31, 2024, reveals fluctuations in performance.
- The ROE started at a modest 7.18% in March 2020, showing a decent return for shareholders.
- However, the ROE decreased significantly to 5.81% by June 2020, indicating a decline in profitability relative to equity.
- The trend worsened as the ROE turned negative in the following quarters, reaching its lowest point at -2.02% in September 2020 and -1.96% in December 2020.
- nVent Electric PLC began to recover its ROE in the subsequent periods, with slight improvements to 1.60% in June 2021 and significant increases to 9.95% in September 2021 and 10.93% in December 2021.
- The positive momentum continued into 2022, with further growth in ROE reaching 18.05% by December 2023.
- However, the ROE decreased to 10.25% by December 2024, suggesting a drop in profitability from the previous quarter but still showing a favorable return for shareholders.
Overall, nVent Electric PLC's ROE displayed a mixed performance over the quarters, reflecting periods of both growth and decline in profitability relative to equity. Investors and stakeholders should further analyze the company's financial position and operational efficiency to understand the factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2024