Packaging Corp of America (PKG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 805,100 | 765,200 | 1,029,800 | 841,100 | 461,000 |
| Total stockholders’ equity | US$ in thousands | 4,404,000 | 3,997,300 | 3,667,100 | 3,607,200 | 3,246,300 |
| ROE | 18.28% | 19.14% | 28.08% | 23.32% | 14.20% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $805,100K ÷ $4,404,000K
= 18.28%
Packaging Corp of America's return on equity (ROE) has shown a positive trend over the years, increasing from 14.20% in December 2020 to 23.32% in December 2021, and further to 28.08% in December 2022. This signifies the company's ability to generate greater profits from shareholders' equity, reflecting efficient utilization of resources.
However, in December 2023, the ROE decreased to 19.14%, which could indicate a decrease in profitability relative to equity. Although the ROE improved slightly to 18.28% in December 2024, it remains below the levels seen in 2022.
Overall, Packaging Corp of America has demonstrated a generally positive performance in terms of ROE, with fluctuations in recent years. It is essential for stakeholders to closely monitor future trends to assess the company's profitability and operational efficiency.
Peer comparison
Dec 31, 2024