Werner Enterprises Inc (WERN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 34,233 | 112,382 | 241,256 | 259,052 | 169,078 |
| Total stockholders’ equity | US$ in thousands | 1,455,930 | 1,528,340 | 1,443,640 | 1,327,550 | 1,195,040 |
| ROE | 2.35% | 7.35% | 16.71% | 19.51% | 14.15% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $34,233K ÷ $1,455,930K
= 2.35%
Werner Enterprises Inc's Return on Equity (ROE) has shown fluctuations over the past five years. The ROE was 14.15% as of December 31, 2020, indicating a moderate level of profitability in relation to shareholders' equity. By December 31, 2021, the ROE had increased to 19.51%, reflecting improved profitability and efficiency in generating returns for equity holders.
However, by December 31, 2022, the ROE dropped to 16.71%, suggesting a slight decrease in profitability compared to the previous year. Further, as of December 31, 2023, the ROE declined significantly to 7.35%, indicating a substantial decrease in efficiency in generating profits relative to the shareholders' equity.
The most recent data point as of December 31, 2024, shows a ROE of 2.35%, reflecting a continued decline in profitability and efficiency in utilizing equity. This downward trend in ROE over the years may indicate potential challenges in effectively utilizing equity to generate profits, which could warrant further investigation into the company's financial performance and strategic initiatives.
Peer comparison
Dec 31, 2024