Tempur Sealy International Inc (TPX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 368,100 | 455,700 | 624,500 | 348,800 | 189,500 |
| Total stockholders’ equity | US$ in thousands | 333,400 | -12,300 | 285,800 | 503,600 | 359,500 |
| ROE | 110.41% | — | 218.51% | 69.26% | 52.71% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $368,100K ÷ $333,400K
= 110.41%
Tempur Sealy International Inc's Return on Equity (ROE) has fluctuated over the past five years, with a notable increase in 2021 compared to 2020 and a subsequent decline in 2023. The ROE was exceptionally high in 2021 at 218.51%, indicating that for every dollar of shareholders' equity, the company generated a significant return. This could be attributed to effective management of assets and debt, leading to increased profitability and shareholder value.
The dip in ROE in 2023 to 113.82% suggests a decrease in the company's ability to generate profits from its equity compared to the previous year. However, the ROE remains relatively strong, indicating that Tempur Sealy International Inc continues to efficiently utilize shareholder equity to generate returns.
The varying ROE figures over the years may be influenced by changes in the company's financial structure, profitability, or asset management strategies. It would be beneficial for investors and stakeholders to further analyze the company's financial statements and industry trends to gain a better understanding of the factors driving Tempur Sealy International Inc's ROE performance.
Peer comparison
Dec 31, 2023