Owens Corning Inc (OC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 647,000 | 1,196,000 | 1,241,000 | 995,000 | -383,000 |
| Total stockholders’ equity | US$ in thousands | 5,077,000 | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 |
| ROE | 12.74% | 23.15% | 27.13% | 23.16% | -9.82% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $647,000K ÷ $5,077,000K
= 12.74%
Owens Corning Inc's return on equity (ROE) has shown a significant improvement over the years, reflecting the company's ability to generate profits from shareholders' equity.
In 2020, the ROE was negative at -9.82%, indicating a loss or inefficient use of equity. However, by 2021, the ROE had rebounded to 23.16%, suggesting a positive turnaround and better profitability relative to shareholder investments.
The trend continued in 2022 and 2023, with ROE reaching 27.13% and 23.15% respectively, demonstrating sustained growth and effectiveness in utilizing equity to generate earnings.
In 2024, the ROE dipped to 12.74%, indicating a slight decline in profitability. Despite this decrease, the ROE remained positive, highlighting Owens Corning Inc's ability to efficiently generate profits from shareholders' investments.
Overall, the increasing trend in ROE from 2020 to 2023, followed by a modest decline in 2024, reflects a generally positive performance in terms of utilizing equity to drive earnings for Owens Corning Inc.