PPG Industries Inc (PPG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,377,000 | 1,270,000 | 1,026,000 | 1,439,000 | 1,059,000 |
| Total stockholders’ equity | US$ in thousands | 6,785,000 | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 |
| ROE | 20.29% | 16.22% | 15.56% | 22.89% | 18.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,377,000K ÷ $6,785,000K
= 20.29%
From 2020 to 2024, PPG Industries Inc's return on equity (ROE) has displayed some fluctuations.
- In 2020, the ROE was at 18.61%, showing a decent level of profitability generated from shareholders' equity.
- The following year, in 2021, there was an improvement in ROE to 22.89%, indicating that the company became even more efficient in generating profits from the shareholders' investment.
- However, in 2022, the ROE decreased to 15.56%, suggesting a slight decline in the company's ability to generate profits relative to the equity invested.
- The ROE slightly increased in 2023 to 16.22%, but it remained below the 2021 level.
- By the end of 2024, the ROE rebounded to 20.29%, showing a positive trend and indicating that PPG Industries Inc managed to enhance its profitability relative to the shareholder's equity.
Overall, the ROE trend of PPG Industries Inc reflects fluctuations over the years, but the general trajectory shows signs of improvement and efficiency in utilizing equity to generate returns. It is important for the company to continue monitoring and enhancing its ROE to ensure sustainable growth and shareholder value.
Peer comparison
Dec 31, 2024