Smurfit WestRock plc (SW)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 837,893 | 1,012,340 | 768,778 | 670,324 |
| Total stockholders’ equity | US$ in thousands | 5,560,000 | 5,025,000 | 4,379,000 | 3,770,000 |
| ROE | 15.07% | 20.15% | 17.56% | 17.78% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $837,893K ÷ $5,560,000K
= 15.07%
Smurfit WestRock plc's return on equity (ROE) has shown some fluctuations over the past four years. It decreased from 17.78% in 2020 to 17.56% in 2021, indicating a slight dip in profitability. However, in 2022, there was a notable increase to 20.15%, reflecting improved profitability. Subsequently, in 2023, the ROE decreased to 15.07%.
The downward trend in ROE from 2022 to 2023 suggests a potential decline in the company's ability to generate profit from shareholders' equity. Investors may be concerned about the company's efficiency in utilizing equity to generate returns. Further analysis of the financial statements and factors impacting profitability would be necessary to understand the underlying reasons for the fluctuating ROE trend.
Peer comparison
Dec 31, 2023