Stepan Company (SCL)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 50,370 | 45,827 | 34,792 | 37,955 | 40,204 | 52,231 | 79,044 | 118,486 | 147,153 | 153,314 | 150,850 | 142,002 | 137,804 | 151,159 | 147,407 | 139,836 | 126,770 | 118,458 | 111,179 | 105,690 |
| Total stockholders’ equity | US$ in thousands | 1,169,930 | 1,219,360 | 1,192,440 | 1,214,520 | 1,216,490 | 1,202,770 | 1,215,100 | 1,189,910 | 1,166,060 | 1,130,240 | 1,125,710 | 1,116,740 | 1,074,190 | 1,057,300 | 1,048,800 | 1,002,280 | 986,693 | 938,193 | 897,429 | 866,778 |
| ROE | 4.31% | 3.76% | 2.92% | 3.13% | 3.30% | 4.34% | 6.51% | 9.96% | 12.62% | 13.56% | 13.40% | 12.72% | 12.83% | 14.30% | 14.05% | 13.95% | 12.85% | 12.63% | 12.39% | 12.19% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $50,370K ÷ $1,169,930K
= 4.31%
Stepping through the return on equity (ROE) trend of Stepan Company from March 31, 2020, to December 31, 2024, we observe a relatively stable performance initially, with ROE ranging from 12.19% to 14.30%. This level of ROE suggests efficient utilization of shareholder equity to generate profits during this period.
However, a noticeable decline in ROE becomes apparent from March 31, 2023, onwards, falling from a high of 9.96% to just 4.31% by December 31, 2024. This decreasing trend could indicate potential issues with either the company's profitability or the effective use of its equity to generate returns for shareholders.
Further investigation into the factors influencing this decline would be necessary to determine the root cause and potential strategies for improvement in Stepan Company's return on equity in the future.
Peer comparison
Dec 31, 2024