Sylvamo Corp (SLVM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 302,000 | 253,000 | 336,000 | 331,000 | 170,000 |
| Total stockholders’ equity | US$ in thousands | 847,000 | 901,000 | 678,000 | 182,000 | 2,112,000 |
| ROE | 35.66% | 28.08% | 49.56% | 181.87% | 8.05% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $302,000K ÷ $847,000K
= 35.66%
Sylvamo Corp's return on equity (ROE) has fluctuated significantly over the years based on the provided data. In December 31, 2020, the ROE stood at 8.05%, indicating a moderate return on the shareholders' equity. However, by December 31, 2021, the ROE surged dramatically to 181.87%, reflecting a substantial increase in profitability and efficiency in utilizing equity to generate earnings.
In the following years, Sylvamo Corp's ROE exhibited some fluctuations. By December 31, 2022, the ROE decreased to 49.56%, still indicating a healthy return on equity but lower than the peak in 2021. In December 31, 2023, the ROE further decreased to 28.08%, suggesting a dip in profitability compared to the previous year.
However, by December 31, 2024, Sylvamo Corp's ROE improved to 35.66%, showing a recovery from the decrease in 2023. Overall, the fluctuating trend in ROE implies varying levels of profitability and efficiency in utilizing shareholders' equity over the years. It is essential for the company to sustain or enhance its ROE to ensure long-term value creation for its shareholders.
Peer comparison
Dec 31, 2024