Rogers Corporation (ROG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 56,600 | 116,600 | 108,133 | 49,990 | 47,319 |
| Total stockholders’ equity | US$ in thousands | 1,259,000 | 1,172,500 | 1,118,900 | 1,020,760 | 933,900 |
| ROE | 4.50% | 9.94% | 9.66% | 4.90% | 5.07% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $56,600K ÷ $1,259,000K
= 4.50%
The return on equity (ROE) for Rogers Corp. has fluctuated over the past five years. In 2023, the ROE decreased to 4.50% from 9.95% in 2022, indicating a significant decline in the company's profitability relative to its equity. This decrease may be a cause for concern as it suggests that the company's ability to generate earnings from its shareholders' equity has weakened.
Comparing the ROE in 2023 to that in 2021 and 2020, when it was 9.66% and 4.90% respectively, shows a mixed trend. While the ROE saw an improvement from 2020 to 2021, the decrease in 2023 indicates a regression in the company's profitability performance. The ROE in 2023 is also slightly lower than the ratio in 2019, which was 5.07%.
Overall, the declining trend in ROE over the past two years for Rogers Corp. suggests a potential deterioration in the company's efficiency in utilizing its shareholders' equity to generate profits. Further analysis would be needed to understand the underlying reasons for this decline and whether it is a temporary issue or a more significant concern for the company's financial health.
Peer comparison
Dec 31, 2023