EchoStar Corporation (SATS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -26,625 | -1,702,060 | 177,051 | 72,875 | -51,904 |
| Total stockholders’ equity | US$ in thousands | 20,191,400 | 19,880,200 | 3,502,620 | 3,353,830 | 3,542,330 |
| ROE | -0.13% | -8.56% | 5.05% | 2.17% | -1.47% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-26,625K ÷ $20,191,400K
= -0.13%
The return on equity (ROE) for EchoStar Corporation has exhibited variability over the past five years.
In December 2020, the ROE was -1.47%, indicating that the company had negative profitability relative to its equity investment for that year. This suggests that the company was not effectively utilizing its shareholders' equity to generate profits.
By December 2021, the ROE improved to 2.17%, showing a modest increase in profitability and the company's ability to generate income from shareholders' equity.
The trend continued as the ROE further increased to 5.05% by December 2022, indicating a more efficient use of equity to generate profits. This improvement suggests that the company was becoming more profitable relative to its shareholders' equity investment.
However, in December 2023, there was a significant decline in ROE to -8.56%, signifying a sharp drop in profitability relative to equity. This could raise concerns about the company's ability to generate returns for its shareholders.
Finally, by December 2024, the ROE slightly recovered to -0.13%. While the improvement is noted, the metric remains negative, indicating that the company's profitability relative to shareholders' equity is still a concern.
Overall, EchoStar Corporation's ROE has shown fluctuations over the five-year period, with mixed performance in effectively utilizing shareholders' equity to generate profits. Additional analysis and context may be needed to understand the underlying reasons for these changes and the company's overall financial health.
Peer comparison
Dec 31, 2024