Newell Brands Inc (NWL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -388,000 | 197,000 | 622,000 | -766,000 | 107,000 |
| Total stockholders’ equity | US$ in thousands | 3,112,000 | 3,519,000 | 4,158,000 | 3,874,000 | 4,963,000 |
| ROE | -12.47% | 5.60% | 14.96% | -19.77% | 2.16% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-388,000K ÷ $3,112,000K
= -12.47%
Newell Brands Inc's return on equity (ROE) has shown considerable fluctuations over the last five years, ranging from a low of -19.88% in 2020 to a high of 13.98% in 2021. The ROE for the most recent year, 2023, is reported at -12.47%. Negative ROE values indicate that the company's net income was insufficient to cover shareholders' equity during those periods.
The positive ROE in 2021 signifies that Newell Brands Inc was able to generate a profit relative to the equity invested by shareholders. However, the substantial decline in ROE in the following years raises concerns about the company's efficiency in utilizing equity to generate returns. It is essential for stakeholders to further investigate the reasons behind the negative ROE figures in order to assess the company's financial health and performance.
Peer comparison
Dec 31, 2023