NXP Semiconductors NV (NXPI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,510,000 | 2,797,000 | 2,787,000 | 1,871,000 | 84,000 |
| Total stockholders’ equity | US$ in thousands | 9,183,000 | 8,644,000 | 7,449,000 | 6,528,000 | 8,944,000 |
| ROE | 27.33% | 32.36% | 37.41% | 28.66% | 0.94% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,510,000K ÷ $9,183,000K
= 27.33%
NXP Semiconductors NV's return on equity (ROE) has shown a significant improvement over the years, reflecting the company's ability to generate higher profits from shareholders' equity.
In December 2020, the ROE was quite low at 0.94%, indicating that the company was not efficiently utilizing its equity to generate profits. However, by December 2021, the ROE increased significantly to 28.66%, signaling a notable improvement in the company's profitability and efficiency in generating returns for its shareholders.
Subsequently, the ROE continued to climb steadily, reaching 37.41% by December 2022, and then maintaining strong levels at 32.36% by December 2023. This trend indicates that NXP Semiconductors NV has been effectively utilizing its equity to generate profits and create value for its shareholders.
Although there was a slight dip in the ROE to 27.33% by December 2024, the company still maintained a relatively high return on equity compared to the starting point in 2020. Overall, the increasing trend in ROE demonstrates NXP Semiconductors NV's efficiency in leveraging its equity to earn profits, which is a positive indicator of the company's financial health and performance.
Peer comparison
Dec 31, 2024