Visteon Corp (VC)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 274,000 518,000 545,000 494,000 486,000 154,000 132,000 136,000 124,000 121,000 82,000 47,000 41,000 28,000 29,000 -5,000 -56,000 -39,000 -31,000 21,000
Total stockholders’ equity US$ in thousands 1,229,000 1,185,000 1,113,000 1,049,000 1,038,000 724,000 705,000 720,000 675,000 555,000 532,000 541,000 516,000 399,000 394,000 384,000 387,000 385,000 358,000 394,000
ROE 22.29% 43.71% 48.97% 47.09% 46.82% 21.27% 18.72% 18.89% 18.37% 21.80% 15.41% 8.69% 7.95% 7.02% 7.36% -1.30% -14.47% -10.13% -8.66% 5.33%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $274,000K ÷ $1,229,000K
= 22.29%

The return on equity (ROE) of Visteon Corp has shown a fluctuating trend over the past few years. It started at a low of 5.33% in March 2020, turning negative in the following quarters, reaching a low of -14.47% by December 2020. However, there has been a significant improvement in ROE since then, with positive values recorded consistently from June 2021 onwards.

The company's ROE improved gradually, reaching 48.97% by June 2024. This indicates that Visteon Corp has been able to generate a higher level of net income relative to its shareholders' equity, reflecting improved efficiency in utilizing equity to generate profits.

The recent increase in ROE suggests that Visteon Corp has been effectively utilizing its equity capital to generate profits for its shareholders. However, it would be important to monitor future ROE trends to ensure sustainable and consistent profitability.