NXP Semiconductors NV (NXPI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,797,000 | 2,787,000 | 1,871,000 | 52,000 | 243,000 |
| Total stockholders’ equity | US$ in thousands | 8,644,000 | 7,449,000 | 6,528,000 | 8,944,000 | 9,441,000 |
| ROE | 32.36% | 37.41% | 28.66% | 0.58% | 2.57% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,797,000K ÷ $8,644,000K
= 32.36%
NXP Semiconductors NV's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stood at 32.36%, reflecting a slight decrease from the previous year's 37.41%. Despite this decrease, the ROE remains at a healthy level, indicating that the company is efficiently generating profit from shareholders' equity.
The significant improvement in ROE from 2020 (0.58%) to 2021 (28.66%) is noteworthy, indicating a substantial increase in profitability and efficiency in the utilization of equity. However, it is important to note that the ROE in 2020 was exceptionally low, possibly due to specific circumstances affecting the company during that year.
Overall, NXP Semiconductors NV's ROE has generally been on an upward trend since 2020, reflecting improved profitability and efficiency in utilizing shareholders' equity to generate returns. This trend suggests that the company has been successful in managing its assets and liabilities effectively to create value for its shareholders.
Peer comparison
Dec 31, 2023