Terex Corporation (TEX)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 518,100 | 483,400 | 446,000 | 360,700 | 300,000 | 266,600 | 232,900 | 232,700 | 220,900 | 179,800 | 137,500 | 54,400 | -10,600 | -3,800 | 11,800 | 96,100 | 54,400 | -3,100 | 14,100 | -3,200 |
| Total stockholders’ equity | US$ in thousands | 1,672,300 | 1,496,200 | 1,432,200 | 1,294,600 | 1,181,200 | 1,034,700 | 1,048,900 | 1,114,100 | 1,109,600 | 1,050,700 | 1,033,900 | 946,100 | 921,500 | 852,700 | 800,400 | 786,200 | 932,300 | 866,300 | 860,100 | 781,800 |
| ROE | 30.98% | 32.31% | 31.14% | 27.86% | 25.40% | 25.77% | 22.20% | 20.89% | 19.91% | 17.11% | 13.30% | 5.75% | -1.15% | -0.45% | 1.47% | 12.22% | 5.84% | -0.36% | 1.64% | -0.41% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $518,100K ÷ $1,672,300K
= 30.98%
Terex Corp.'s return on equity (ROE) has shown a positive trend over the past eight quarters, reflecting an improvement in the company's profitability and efficiency in generating returns for shareholders. The ROE has consistently increased from 20.89% in Q1 2022 to 30.98% in Q4 2023. This steady increase indicates that Terex Corp. is effectively utilizing shareholders' equity to generate profits.
The average ROE for the last eight quarters stands at approximately 28.31%, highlighting the company's ability to generate a return of over 28 cents for every dollar of shareholders' equity invested. This indicates a strong performance in terms of profitability and efficiency in comparison to previous quarters.
Overall, Terex Corp.'s improving ROE trend suggests that the company has been successful in managing its assets and liabilities to generate higher returns for its shareholders. It also reflects positively on the management's ability to grow the company's profitability over time.