Vulcan Materials Company (VMC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 933,200 | 575,600 | 670,800 | 584,500 | 617,700 |
| Total stockholders’ equity | US$ in thousands | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,300 | 5,621,860 |
| ROE | 12.47% | 8.31% | 10.25% | 9.70% | 10.99% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $933,200K ÷ $7,483,400K
= 12.47%
Vulcan Materials Co's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE for the company was 12.47% as of December 31, 2023, showing an improvement compared to the previous year's figure of 8.31% as of December 31, 2022. This increase indicates that the company generated a higher level of net income relative to its shareholders' equity in 2023.
Looking back at the trend, we observe that Vulcan Materials Co's ROE was 10.25% as of December 31, 2021, which was higher than the 9.70% recorded as of December 31, 2020. However, the ROE figures in 2021 and 2020 were lower than the 10.99% reported as of December 31, 2019.
Overall, the company's ROE has shown variation year over year, reflecting changes in profitability and efficiency in utilizing shareholder equity to generate earnings. The increasing trend in ROE from 2020 to 2023 suggests potential improvements in the company's operational performance and profitability. Furthermore, investors and stakeholders may view the higher ROE positively as it indicates effective management of assets and capital structure to create value for shareholders.
Peer comparison
Dec 31, 2023