Newell Brands Inc (NWL)

Return on equity (ROE)

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net income (ttm) US$ in thousands -388,000 -551,000 -314,000 -133,000 197,000 544,000 740,000 757,000 622,000 655,000 744,000 606,000 -766,000 -103,000 -1,033,000 -1,021,000 107,000 -503,000 -7,188,000 -7,146,300
Total stockholders’ equity US$ in thousands 3,112,000 3,126,000 3,315,000 3,333,000 3,519,000 3,855,000 4,022,000 4,047,000 4,158,000 4,055,000 3,986,000 3,836,000 3,874,000 3,726,000 3,492,000 3,454,000 4,963,000 4,137,600 4,969,200 4,948,400
ROE -12.47% -17.63% -9.47% -3.99% 5.60% 14.11% 18.40% 18.71% 14.96% 16.15% 18.67% 15.80% -19.77% -2.76% -29.58% -29.56% 2.16% -12.16% -144.65% -144.42%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-388,000K ÷ $3,112,000K
= -12.47%

To analyze Newell Brands Inc's return on equity (ROE) based on the provided data, we observe a fluctuating trend over the past eight quarters.

The ROE has been negative in the most recent quarters (Q4 2023, Q3 2023, Q2 2023, and Q1 2023), indicating that the company's net income generated from shareholders' equity has been insufficient to deliver a positive return for investors. The significant negative ROE values suggest that the company's profitability and efficiency in utilizing shareholders' equity have been underperforming during these periods.

In contrast, the ROE was positive in the earlier quarters of Q4 2022, Q3 2022, Q2 2022, and Q1 2022, with values ranging from 5.60% to 18.34%. These positive ROE figures indicate that the company was able to generate a return on equity during these periods, reflecting a more favorable performance in terms of profitability and efficient use of shareholders' equity.

Overall, the fluctuating pattern in Newell Brands Inc's ROE suggests varying levels of performance and efficiency in generating returns for shareholders in the analyzed periods. A negative ROE trend in the most recent quarters may raise concerns about the company's ability to generate sustainable profits relative to its equity base, which would require further investigation into the factors influencing its financial performance.