ODP Corp (ODP)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 139,000 | 166,000 | -208,000 | -319,000 | 99,000 |
| Total stockholders’ equity | US$ in thousands | 1,101,000 | 1,287,000 | 1,438,000 | 1,880,000 | 2,173,000 |
| ROE | 12.62% | 12.90% | -14.46% | -16.97% | 4.56% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $139,000K ÷ $1,101,000K
= 12.62%
ODP Corp's return on equity (ROE) has shown variability over the past five years. In 2023, the ROE stood at 12.62%, slightly lower than the previous year's level of 12.90%. However, it is an improvement compared to the negative ROE figures reported in 2021 and 2020, which were -14.46% and -16.97%, respectively. The positive ROE in 2023 indicates that the company generated a profit relative to its shareholder equity.
The significant improvement from the negative ROE in 2020 and 2021 suggests that ODP Corp has been able to better utilize its equity to generate returns for shareholders in recent years. The positive trend in ROE from 2019 to 2023 indicates that the company's profitability and efficiency in utilizing shareholder funds have been improving.
Overall, the positive ROE in 2023 is a good sign for ODP Corp, indicating that the company is generating a satisfactory return on the equity invested by shareholders. It also reflects positively on the company's ability to generate profits from its operations and manage its assets effectively to create value for its shareholders.
Peer comparison
Dec 31, 2023