Vulcan Materials Company (VMC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 911,900 | 933,200 | 575,600 | 670,800 | 584,500 |
| Total stockholders’ equity | US$ in thousands | 8,118,600 | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,330 |
| ROE | 11.23% | 12.47% | 8.31% | 10.25% | 9.70% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $911,900K ÷ $8,118,600K
= 11.23%
Vulcan Materials Company's return on equity (ROE) has shown fluctuations over the past five years.
In 2020, the ROE stood at 9.70%, indicating that for every dollar of shareholders' equity, the company generated a return of 9.70%. The following year, in 2021, the ROE improved slightly to 10.25%. However, in 2022, there was a decline in ROE to 8.31%, suggesting a decrease in the company's profitability relative to its shareholders' equity.
The trend reversed in 2023, with the ROE increasing significantly to 12.47%, signaling a more efficient use of shareholder funds to generate profits. This positive momentum continued in 2024, with the ROE at 11.23%, indicating sustained profitability and value creation for shareholders.
Overall, Vulcan Materials Company's ROE has shown variability, with fluctuations reflecting changes in the company's financial performance and efficiency in utilizing shareholders' equity. It is important for investors to monitor these trends to assess the company's profitability and potential for generating returns on investment.
Peer comparison
Dec 31, 2024