Pilgrims Pride Corp (PPC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 321,574 | 745,930 | 31,000 | 94,757 | 455,924 |
| Total stockholders’ equity | US$ in thousands | 3,331,370 | 2,840,810 | 2,577,080 | 2,563,760 | 2,525,660 |
| ROE | 9.65% | 26.26% | 1.20% | 3.70% | 18.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $321,574K ÷ $3,331,370K
= 9.65%
Pilgrim`s Pride Corp.'s return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE stands at 9.65%, reflecting a decline from the previous year. The sharp decrease from the 2022 ROE of 26.26% indicates a substantial decrease in profitability or increased leverage.
The 2021 ROE was notably low at 1.20%, signaling poor performance in generating returns for shareholders. In 2020, the ROE improved to 3.70%, but it remained relatively low compared to the years before and after. The highest ROE was observed in 2019 at 18.05%, indicating a strong performance in that particular year.
Overall, the fluctuating trend in Pilgrim`s Pride Corp.'s ROE suggests variability in the company's ability to utilize equity effectively to generate profits. Further analysis of the company's financial performance and leverage ratios would be beneficial to understand the underlying factors driving these changes in ROE.
Peer comparison
Dec 31, 2023