SkyWest Inc (SKYW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 322,962 | 34,342 | 72,953 | 111,910 | -8,515 |
| Total stockholders’ equity | US$ in thousands | 2,408,780 | 2,113,500 | 2,347,630 | 2,267,510 | 2,139,540 |
| ROE | 13.41% | 1.62% | 3.11% | 4.94% | -0.40% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $322,962K ÷ $2,408,780K
= 13.41%
SkyWest Inc's return on equity (ROE) has fluctuated over the past five years. In 2020, the company reported a negative ROE of -0.40%, indicating that the company's net income was insufficient to cover shareholders' equity. However, there was an improvement in 2021, with an ROE of 4.94%, suggesting a better utilization of equity to generate profits.
In 2022 and 2023, the ROE of SkyWest Inc declined to 3.11% and 1.62% respectively, indicating a decrease in profitability relative to shareholders' equity. This could be a result of various factors such as low net income or increased equity base.
The most significant improvement came in 2024, with SkyWest Inc achieving an ROE of 13.41%, indicating a significant increase in profitability in relation to shareholders' equity. This could be attributed to improved operational efficiency, higher net income, or effective management of the company's equity base.
Overall, SkyWest Inc's ROE performance has been volatile, with fluctuations in profitability relative to shareholders' equity. It is important for investors and stakeholders to monitor these changes to assess the company's efficiency in generating returns for its equity holders.
Peer comparison
Dec 31, 2024