Vontier Corp (VNT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 376,900 | 401,300 | 413,000 | 342,000 |
| Total stockholders’ equity | US$ in thousands | 890,400 | 576,500 | 569,900 | 187,800 |
| ROE | 42.33% | 69.61% | 72.47% | 182.11% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $376,900K ÷ $890,400K
= 42.33%
The return on equity (ROE) for Vontier Corporation has varied over the past five years. In 2023, the ROE was 42.33%, which represents a decrease from the previous year's ROE of 69.61% in 2022. The ROE in 2021 was 72.47%, showing a slight decline from the exceptionally high ROE of 182.11% in 2020. Prior to 2020, the ROE was 24.10% in 2019.
The fluctuation in ROE indicates varying levels of profitability and efficiency in utilizing shareholder equity over the years. While high ROE values are generally favorable as they signify effective use of equity to generate earnings, it is important to assess the sustainability and underlying factors driving these returns. The downward trend in ROE from 2020 to 2023 suggests potential challenges or changes in the company's financial performance and capital structure that may warrant further investigation.
Overall, Vontier Corporation's ROE has shown volatility, and it is essential for stakeholders to monitor the company's financial health and performance indicators closely to understand the factors influencing its return on equity.
Peer comparison
Dec 31, 2023