Sylvamo Corp (SLVM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 253,000 | 118,000 | 331,000 |
| Total stockholders’ equity | US$ in thousands | 901,000 | 678,000 | 182,000 |
| ROE | 28.08% | 17.40% | 181.87% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $253,000K ÷ $901,000K
= 28.08%
Sylvamo Corp's return on equity (ROE) has shown significant fluctuations over the past four years. In 2023, the ROE increased notably to 28.08%, a substantial improvement compared to the previous year's ROE of 17.40% in 2022. However, the ROE in 2023 remained below the exceptional level of 181.87% recorded in 2021, which was likely an outlier year. The ROE in 2020 was comparatively lower at 8.05%.
The fluctuations in ROE can be indicative of changes in the company's profitability and efficiency in generating returns for its shareholders. A higher ROE suggests that the company is effectively utilizing its equity to generate profits, while a lower ROE may indicate inefficiencies or lower profitability.
Further analysis would be necessary to understand the factors driving these fluctuations in ROE and assess the company's financial performance and sustainability over time.
Peer comparison
Dec 31, 2023