PBF Energy Inc (PBF)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-533,800	2,140,500	2,876,800	231,000	-1,392,400
Total stockholders’ equity	US$ in thousands	5,544,200	6,488,300	4,929,200	1,926,200	1,642,800
ROE		-9.63%	32.99%	58.36%	11.99%	-84.76%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-533,800K ÷ $5,544,200K
= -9.63%

The return on equity (ROE) of PBF Energy Inc has displayed significant fluctuations over the past five years based on the provided data.

- In December 31, 2020, the ROE was -84.76%, indicating that the company generated a negative return on equity during that period. This may be a concerning sign, suggesting that the company's net income was not sufficient to generate returns for its shareholders based on their equity investment.

- By December 31, 2021, the ROE improved to 11.99%, signifying a turnaround in the company's profitability and efficiency in utilizing shareholders' equity to generate returns. This positive result may indicate improved performance or strategic changes implemented by the company.

- The ROE continued to increase significantly by December 31, 2022, reaching 58.36%. This substantial improvement suggests that PBF Energy Inc was able to efficiently leverage its equity to generate higher profits for its shareholders, indicating strong performance and financial health.

- However, by December 31, 2023, the ROE decreased to 32.99%, although still at a relatively healthy level. This slight decline may be attributed to various factors such as changes in the company's financial structure, profitability, or investment strategies.

- The trend reversed again by December 31, 2024, with the ROE falling to -9.63%, indicating a significant decrease in the company's ability to generate returns on equity. This negative result may raise concerns about the company's financial performance and efficiency in utilizing shareholders' equity during that period.

In conclusion, the fluctuating ROE of PBF Energy Inc over the past five years reflects varying levels of profitability, efficiency, and financial health. It is essential for stakeholders to closely monitor these fluctuations and understand the factors driving these changes to assess the company's overall performance and sustainability.