Rogers Corporation (ROG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 26,100 | 56,600 | 116,600 | 108,100 | 49,990 |
| Total stockholders’ equity | US$ in thousands | 1,251,600 | 1,259,000 | 1,172,470 | 1,118,900 | 1,020,760 |
| ROE | 2.09% | 4.50% | 9.94% | 9.66% | 4.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $26,100K ÷ $1,251,600K
= 2.09%
ROE is a key financial metric that indicates the profitability of a company by measuring how efficiently it generates profits from its shareholders' equity. Looking at Rogers Corporation's ROE over the past five years, there has been some fluctuation. In 2020, the ROE was 4.90%, indicating a moderate return on equity. Subsequently, there was an improvement in 2021 and 2022, with ROE increasing to 9.66% and 9.94% respectively, suggesting a more efficient utilization of equity to generate profits.
However, in 2023 and 2024, there was a decline in ROE to 4.50% and 2.09% respectively. These lower percentages may indicate challenges in maintaining profitability relative to the level of shareholders' equity. It would be beneficial for Rogers Corporation to analyze the factors contributing to this decline and take strategic actions to enhance its return on equity in the future.
Peer comparison
Dec 31, 2024