Owens Corning Inc (OC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,196,000 | 1,241,000 | 995,000 | -383,000 | 405,000 |
| Total stockholders’ equity | US$ in thousands | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 | 4,631,000 |
| ROE | 23.15% | 27.13% | 23.16% | -9.82% | 8.75% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,196,000K ÷ $5,166,000K
= 23.15%
Owens Corning's Return on Equity (ROE) has exhibited fluctuating trends over the past five years. In 2023, the ROE stood at 23.15%, marking a slight decrease from the previous year's 27.13%. Although ROE dipped slightly, it remains at a relatively healthy level.
Comparing 2023 to 2021, there was a marginal increase in ROE from 23.16% to 23.15%. This suggests that the company's ability to generate profit from shareholders' equity remained relatively stable year-over-year.
On the other hand, the significant negative ROE of -9.82% in 2020 might have been a concerning factor, indicating that the company was not efficiently utilizing its equity to generate profits during that period. However, Owens Corning managed to turn around this negative trend in 2019, achieving an ROE of 8.75%.
Overall, the recent ROE of 23.15% indicates that Owens Corning is efficiently utilizing its equity to generate profits for its shareholders, albeit slightly lower than the previous year. It is essential for investors and stakeholders to monitor ROE trends over time to assess the company's profitability and efficiency in generating returns on shareholder equity.