Pilgrims Pride Corp (PPC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,086,440 | 321,574 | 745,930 | 31,000 | 94,757 |
| Total stockholders’ equity | US$ in thousands | 4,239,410 | 3,331,370 | 2,840,810 | 2,577,080 | 2,563,760 |
| ROE | 25.63% | 9.65% | 26.26% | 1.20% | 3.70% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,086,440K ÷ $4,239,410K
= 25.63%
Pilgrims Pride Corp's return on equity (ROE) has varied over the years, as evidenced by the data provided. In 2020, the ROE was 3.70%, indicating that for every dollar of equity, the company generated a return of 3.70%. However, the ROE decreased significantly to 1.20% in 2021, suggesting a decline in the company's profitability and efficiency in generating returns for shareholders.
The trend reversed in 2022 when the ROE surged to 26.26%, indicating a substantial improvement in the company's performance in utilizing shareholder equity to generate profits. This increase in ROE suggests that Pilgrims Pride Corp was able to generate higher returns for shareholders relative to the equity invested during that year.
In 2023, the ROE decreased to 9.65%, which, although lower than the peak in 2022, still indicates a reasonable return on equity for the company. The most recent data point, in 2024, shows a further improvement in ROE to 25.63%, indicating that Pilgrims Pride Corp is continuing to enhance its profitability and efficiency in utilizing equity to generate returns for shareholders.
Overall, the fluctuation in Pilgrims Pride Corp's ROE over the years suggests varying levels of profitability and efficiency in utilizing shareholder equity. Investors and analysts would want to investigate the factors driving these changes to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024