Sealed Air Corporation (SEE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 341,600 | 491,600 | 506,800 | 502,900 | 263,000 |
| Total stockholders’ equity | US$ in thousands | 549,500 | 344,100 | 248,700 | 172,500 | -196,200 |
| ROE | 62.17% | 142.87% | 203.78% | 291.54% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $341,600K ÷ $549,500K
= 62.17%
Sealed Air Corp.'s Return on Equity (ROE) has shown a fluctuating trend over the past five years. The ROE was exceptionally high at 291.42% in 2020, then decreased to 203.78% in 2021, and further decreased to 142.87% in 2022. However, there was a notable increase to 62.17% in 2023.
The significant fluctuations in ROE can indicate varying levels of financial leverage, asset turnover, and net profit margin. While a high ROE is generally favorable as it signifies efficient use of shareholder equity to generate profits, excessively high ratios may raise questions about sustainability and potential risks.
It is important for Sealed Air Corp. to continue monitoring and analyzing the factors that contribute to these fluctuations in ROE to ensure long-term financial stability and sustainable growth.
Peer comparison
Dec 31, 2023