Owens Corning Inc (OC)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 647,000 | 1,036,000 | 1,052,000 | 1,112,000 | 1,196,000 | 1,189,000 | 1,322,000 | 1,320,000 | 1,241,000 | 1,344,000 | 1,134,000 | 1,089,000 | 995,000 | 1,000,000 | 946,000 | 744,000 | -383,000 | -542,000 | -598,000 | -556,000 |
| Total stockholders’ equity | US$ in thousands | 5,077,000 | 5,623,000 | 5,472,000 | 5,229,000 | 5,166,000 | 5,105,000 | 5,014,000 | 4,791,000 | 4,575,000 | 4,640,000 | 4,540,000 | 4,341,000 | 4,296,000 | 4,210,000 | 4,117,000 | 3,928,000 | 3,901,000 | 3,852,000 | 3,624,000 | 3,487,000 |
| ROE | 12.74% | 18.42% | 19.23% | 21.27% | 23.15% | 23.29% | 26.37% | 27.55% | 27.13% | 28.97% | 24.98% | 25.09% | 23.16% | 23.75% | 22.98% | 18.94% | -9.82% | -14.07% | -16.50% | -15.94% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $647,000K ÷ $5,077,000K
= 12.74%
Owens Corning Inc's return on equity (ROE) has shown mixed performance over the past few years, as gathered from the provided data. The company experienced negative ROE figures in the first half of 2020, indicating challenges in generating profit relative to shareholders' equity. However, there was a notable improvement in ROE from March 2021 onwards, reaching a peak of 28.97% in September 2022. This significant increase suggests that Owens Corning Inc was able to efficiently utilize shareholder funds to generate profits during this period.
Subsequently, the ROE figures exhibited some fluctuation but generally remained at healthier levels compared to the negative figures seen in 2020. However, there was a decline in ROE towards the end of 2024, with the figure dropping to 12.74% in December 2024. This decrease may indicate potential challenges in sustaining profitability relative to the equity invested in the company.
Overall, the trend in Owens Corning Inc's ROE reflects periods of improvement in profitability efficiency, as evidenced by the increasing figures from 2021 to the first half of 2023. However, the decline towards the end of 2024 suggests a need for the company to focus on enhancing its ability to generate returns on equity to ensure long-term financial stability and growth.