Packaging Corp of America (PKG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 765,200 | 1,029,800 | 841,100 | 461,000 | 696,400 |
| Total stockholders’ equity | US$ in thousands | 3,997,300 | 3,667,100 | 3,607,200 | 3,246,300 | 3,071,000 |
| ROE | 19.14% | 28.08% | 23.32% | 14.20% | 22.68% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $765,200K ÷ $3,997,300K
= 19.14%
Packaging Corp Of America's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE decreased to 18.99% from the previous year's high of 27.87% in 2022. However, compared to 2021 and 2020, the ROE remains relatively strong. In 2021, the ROE was 23.14%, showing a slight decline from the prior year. Notably, in 2020, the ROE was 14.09%, indicating a significant improvement from the 2019 figure of 22.51%. Overall, the company has maintained a healthy ROE above 14% over the period, indicating efficient utilization of shareholders' equity to generate profits. Further analysis of the underlying factors contributing to these fluctuations would provide deeper insights into the company's performance and the effectiveness of its capital structure management.
Peer comparison
Dec 31, 2023