Whirlpool Corporation (WHR)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -323,000 | 560,000 | 534,000 | 400,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,683,000 | 3,042,000 | 3,097,000 | 2,354,000 | 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 |
| ROE | -12.04% | 18.41% | 17.24% | 16.99% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-323,000K ÷ $2,683,000K
= -12.04%
Whirlpool Corporation's return on equity (ROE) experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The ROE started at a high level of 28.33% in March 2020, indicating efficient utilization of shareholders' equity to generate profits. The ROE remained relatively stable in the following quarters, ranging between 25.63% to 27.62% by the end of December 2020.
Subsequently, the ROE showed a significant improvement, reaching a peak of 39.93% in September 2021, indicating enhanced profitability and efficient management of shareholders' investment. However, starting from June 2022, there was a notable decline in the ROE, dropping to 9.17% in September 2022 and turning negative in subsequent quarters. The negative ROE values from December 2022 to September 2023 suggest that the company's net income was not adequate to cover shareholders' equity during this period.
There was a recovery in the ROE from December 2023, reaching 18.41% by September 2024. Despite the improvement, the ROE remained volatile, with a decline to -12.04% by the end of December 2024, indicating challenges in generating profits relative to the shareholders' equity during this particular quarter.
Overall, the analysis of Whirlpool Corporation's ROE highlights periods of strong profitability as well as challenges in effectively utilizing shareholders' equity to generate returns. The company may need to focus on improving its profitability and operational efficiency to sustain and enhance its ROE in the future.
Peer comparison
Dec 31, 2024