Pentair PLC (PNR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 622,700 | 480,900 | 553,000 | 358,600 | 355,700 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 | 1,953,900 |
| ROE | 19.36% | 17.76% | 22.83% | 17.03% | 18.20% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $622,700K ÷ $3,217,100K
= 19.36%
Pentair plc's return on equity (ROE) has demonstrated fluctuations over the past five years. The ROE was 19.36% in 2023, showing an increase from 17.76% in 2022. This improvement suggests that the company generated a higher level of net income relative to its shareholders' equity in the most recent year.
Comparing the 2023 ROE to earlier years, it is lower than the 22.83% in 2021 and higher than the 17.03% in 2020. This indicates a certain level of variability in Pentair's profitability as measured by ROE.
In general, Pentair's ROE has shown a relatively stable performance around the range of 17% to 22% in recent years, indicating that the company has been effectively utilizing its equity to generate profits. Overall, while the ROE has fluctuated, Pentair plc has managed to maintain a healthy level of return on equity, suggesting efficient management of shareholder investments.
Peer comparison
Dec 31, 2023