Tidewater Inc (TDW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 180,656 | 97,185 | -21,749 | -128,969 | -196,242 |
| Total stockholders’ equity | US$ in thousands | 1,114,110 | 1,039,240 | 865,968 | 701,303 | 822,115 |
| ROE | 16.22% | 9.35% | -2.51% | -18.39% | -23.87% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $180,656K ÷ $1,114,110K
= 16.22%
Based on the provided data, Tidewater Inc's return on equity (ROE) has shown a fluctuating trend over the past five years.
- As of December 31, 2020, the ROE was -23.87%, indicating that the company had a negative ROE, signifying that the company had a net loss relative to its equity.
- By December 31, 2021, the ROE improved to -18.39%, although still negative, showing some progress in utilization of equity to generate returns.
- The trend continued to improve in the subsequent years, with ROE reaching -2.51% by December 31, 2022, indicating that the company was moving towards profitability as it managed to reduce its losses in relation to equity.
- Tidewater Inc's performance improved significantly in 2023, as the ROE stood at 9.35%, turning positive for the first time in the period under review. This suggests that the company was effectively utilizing its equity to generate profits.
- By December 31, 2024, the ROE further increased to 16.22%, indicating a continued positive trend in the company's ability to generate returns on equity. This improvement suggests that Tidewater Inc was becoming more efficient in using its shareholders' equity to generate profits.
In conclusion, Tidewater Inc has shown a gradual improvement in its return on equity over the past five years, progressing from negative values to positive returns. This positive trend indicates that the company has been able to enhance its profitability and efficiency in utilizing shareholder equity to generate returns. It is essential for investors and stakeholders to monitor this trend to assess the company's financial health and performance over time.
Peer comparison
Dec 31, 2024