Sensata Technologies Holding NV (ST)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	128,477	-3,909	310,685	363,580	164,286
Total stockholders’ equity	US$ in thousands	2,890,440	2,996,280	3,110,810	3,094,730	2,705,490
ROE		4.44%	-0.13%	9.99%	11.75%	6.07%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $128,477K ÷ $2,890,440K
= 4.44%

Sensata Technologies Holding NV's return on equity (ROE) has shown some fluctuations over the past five years. In 2020, the ROE was 6.07%, indicating that the company generated a return of 6.07% for every dollar of shareholders' equity. The ROE then improved significantly to 11.75% by the end of 2021, suggesting an enhanced profitability and efficiency in utilizing equity.

However, by the end of 2022, the ROE decreased to 9.99%, although it remained at a relatively healthy level. The company experienced a notable decline in ROE in 2023, dropping into negative territory at -0.13%. This negative ROE indicates that Sensata Technologies Holding NV incurred a loss relative to the equity invested during that period.

By the end of 2024, the ROE recovered to 4.44%, showing signs of improvement compared to the previous year. Overall, the varying ROE figures suggest that Sensata Technologies Holding NV has experienced fluctuations in its profitability and efficiency in generating returns for shareholders over the analyzed period. Further investigation into the company's financial performance and factors influencing these fluctuations would be beneficial to assess its long-term sustainability and growth prospects.