Stanley Black & Decker Inc (SWK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 294,300 | -310,500 | 170,300 | 1,689,200 | 1,233,800 |
| Total stockholders’ equity | US$ in thousands | 8,719,900 | 9,056,100 | 9,712,100 | 11,590,500 | 11,059,600 |
| ROE | 3.38% | -3.43% | 1.75% | 14.57% | 11.16% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $294,300K ÷ $8,719,900K
= 3.38%
The return on equity (ROE) for Stanley Black & Decker Inc has shown fluctuations over the years:
- In December 31, 2020, the ROE was 11.16%, indicating a decent return on shareholders' equity.
- By December 31, 2021, the ROE increased to 14.57%, showing improved efficiency in generating profits from shareholders' equity.
- However, by December 31, 2022, the ROE dropped significantly to 1.75%, suggesting a decline in the company's ability to generate profits from equity.
- The trend worsened in December 31, 2023, with a negative ROE of -3.43%, indicating that the company was operating at a loss in relation to shareholders' equity.
- There was a slight improvement by December 31, 2024, with the ROE increasing to 3.38%, but it still remained relatively low.
Overall, the fluctuating ROE figures suggest inconsistent performance in utilizing shareholders' equity to generate profits. It would be important for stakeholders to further investigate the underlying reasons for these variations and assess the company's strategies to improve profitability in relation to equity in the future.
Peer comparison
Dec 31, 2024