Whirlpool Corporation (WHR)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 480,000 | -1,615,000 | -1,555,000 | -2,011,000 | -1,519,000 | 383,000 | 711,000 | 1,663,000 | 1,783,000 | 1,982,000 | 1,903,000 | 1,352,000 | 1,073,000 | 864,000 | 830,000 | 867,000 | 1,184,000 | 1,066,000 | 918,000 | 194,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,064,000 | 2,018,000 | 2,061,000 | 2,336,000 | 4,178,000 | 4,036,000 | 4,575,000 | 4,846,000 | 4,964,000 | 4,951,000 | 4,222,000 | 3,885,000 | 3,371,000 | 3,018,000 | 3,060,000 | 3,195,000 | 3,028,000 | 2,749,000 | 2,802,000 |
| ROE | 20.32% | -78.25% | -77.06% | -97.57% | -65.03% | 9.17% | 17.62% | 36.35% | 36.79% | 39.93% | 38.44% | 32.02% | 27.62% | 25.63% | 27.50% | 28.33% | 37.06% | 35.20% | 33.39% | 6.92% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $480,000K ÷ $2,362,000K
= 20.32%
Whirlpool Corp.'s return on equity (ROE) has displayed significant fluctuations over the past eight quarters. In Q4 2023, the ROE stood at 20.36%, indicating a solid profitability. However, the previous three quarters showed negative returns, with Q1 2023 exhibiting the lowest ROE at -97.57%.
The inconsistency in ROE performance suggests varying levels of efficiency in generating profits relative to shareholders' equity. The positive ROE in Q4 2023 may be attributed to improved operational performance or effective financial management strategies. Conversely, the negative ROEs in the preceding quarters indicate challenges in utilizing equity effectively to generate returns for shareholders.
Overall, Whirlpool Corp. should focus on sustaining positive ROE levels to enhance shareholder value and strengthen its financial position in the market. Further analysis of the company's financial statements and key performance indicators is recommended to identify underlying factors influencing ROE fluctuations.
Peer comparison
Dec 31, 2023