Terex Corporation (TEX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 335,000 | 518,000 | 300,000 | 220,900 | -10,600 |
| Total stockholders’ equity | US$ in thousands | 1,832,000 | 1,672,300 | 1,181,200 | 1,109,600 | 921,500 |
| ROE | 18.29% | 30.98% | 25.40% | 19.91% | -1.15% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $335,000K ÷ $1,832,000K
= 18.29%
Terex Corporation's return on equity (ROE) has shown a fluctuating trend over the years based on the provided data. The ROE was negative at -1.15% on December 31, 2020, indicating the company's earnings were insufficient to generate a positive return for shareholders during that period.
Subsequently, there was a turnaround as the ROE improved significantly to 19.91% by December 31, 2021, and continued to increase to 25.40% by December 31, 2022. This upward trend suggests that the company became more efficient in utilizing shareholder equity to generate profits.
By December 31, 2023, Terex Corporation achieved a further increase in ROE to 30.98%, reflecting a strong performance in generating returns for investors. However, there was a slight dip in ROE to 18.29% by December 31, 2024, indicating a potential slowdown in the company's profitability compared to the previous year.
Overall, despite some fluctuations, Terex Corporation has demonstrated an overall positive trend in ROE from 2020 to 2024, indicating an improving ability to generate profits relative to shareholders' equity during the period under consideration.