Pentair PLC (PNR)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 622,700 | 509,700 | 493,000 | 493,000 | 480,900 | 534,600 | 562,800 | 542,000 | 553,000 | 507,300 | 474,500 | 414,500 | 358,600 | 353,400 | 334,900 | 377,100 | 355,700 | 350,800 | 368,600 | 295,800 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 3,040,900 | 2,935,300 | 2,809,500 | 2,708,100 | 2,639,200 | 2,563,000 | 2,503,900 | 2,421,900 | 2,338,100 | 2,271,600 | 2,193,800 | 2,106,300 | 2,049,800 | 1,949,700 | 1,892,500 | 1,953,900 | 1,868,800 | 1,806,600 | 1,870,400 |
| ROE | 19.36% | 16.76% | 16.80% | 17.55% | 17.76% | 20.26% | 21.96% | 21.65% | 22.83% | 21.70% | 20.89% | 18.89% | 17.03% | 17.24% | 17.18% | 19.93% | 18.20% | 18.77% | 20.40% | 15.81% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $622,700K ÷ $3,217,100K
= 19.36%
To analyze Pentair plc's return on equity (ROE) over the recent quarters, we observe fluctuations in the ROE figures. Pentair's ROE ranged from 16.76% to 21.96% during 2022 and 2023. The ROE peaked at 21.96% in Q2 2022 and hit a low of 16.76% in Q3 2023. Overall, Pentair's ROE has shown some volatility but has generally remained above 16% throughout the observed period.
A high ROE like the one Pentair exhibited indicates that the company is effectively utilizing its shareholders' equity to generate profits. However, the fluctuations in ROE suggest that the company's profitability and efficiency in generating returns for shareholders may be subject to various factors such as operating performance, financial leverage, and management decisions.
It is essential for stakeholders to further investigate the reasons behind the fluctuations in ROE to assess Pentair's financial health and sustainability in delivering value to its shareholders. Analyses of the company's profitability, operational efficiency, and capital structure may provide insights into the drivers behind the varying ROE figures.
Peer comparison
Dec 31, 2023