Whirlpool Corporation (WHR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 481,000 | -1,519,000 | 1,783,000 | 1,075,000 | 1,168,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 | 3,195,000 |
| ROE | 20.36% | -65.03% | 36.79% | 27.67% | 36.56% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $481,000K ÷ $2,362,000K
= 20.36%
Whirlpool Corp.'s return on equity (ROE) has experienced fluctuations over the past five years. In 2023, the ROE stood at 20.36%, showing a significant improvement from the negative ROE of -65.03% in 2022. This positive change indicates the company's ability to generate profit from shareholders' equity during the recent fiscal year.
Comparing the 2023 ROE to the previous years, it is lower than the ROE in 2021 (36.79%) and 2019 (37.06%), suggesting a relative decrease in efficiency in generating returns for shareholders' equity. However, it surpasses the ROE recorded in 2020 (28.45%), reflecting a recovery in profitability.
The negative ROE in 2022 could indicate that the company's net income was insufficient to cover the shareholders' equity, leading to a loss. This could be due to various reasons such as operational challenges, extraordinary expenses, or financial restructuring issues.
Overall, while there has been some volatility in Whirlpool Corp.'s ROE over the years, the recent improvement in 2023 is a positive sign for investors, indicating better financial performance and potential growth opportunities for the company.
Peer comparison
Dec 31, 2023