Wabash National Corporation (WNC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 231,252 | 112,258 | 1,164 | -97,412 | 89,575 |
| Total stockholders’ equity | US$ in thousands | 549,496 | 397,613 | 325,539 | 404,879 | 520,988 |
| ROE | 42.08% | 28.23% | 0.36% | -24.06% | 17.19% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $231,252K ÷ $549,496K
= 42.08%
The return on equity (ROE) of Wabash National Corp. has demonstrated a fluctuating trend over the past five years. In 2023, the ROE significantly improved to 42.08%, reflecting a substantial increase compared to the previous year. This indicates that the company generated an impressive return for every dollar of shareholders' equity invested in the business.
The sharp increase in ROE in 2023 can be attributed to enhanced profitability, efficient asset utilization, or increased leverage. It suggests that Wabash National Corp. effectively managed its resources and operations to generate higher profits relative to its shareholders' equity.
In contrast, the ROE in 2022 stood at 28.23%, showcasing a slight decrease from the peak in 2021. Despite the decline, the ROE remained at a healthy level, indicating that the company continued to generate satisfactory returns for its shareholders during that year.
The ROE turned positive in 2021 after being close to zero in 2020 and significantly negative in 2019. The notable improvement from negative to positive ROE in 2021 signifies that Wabash National Corp. successfully turned around its profitability and operational efficiency, thereby creating value for its shareholders.
Overall, the ROE trend demonstrates that Wabash National Corp. has shown resilience and the ability to adapt to challenging market conditions, ultimately delivering increasing returns on equity to its shareholders over the years.