Olympic Steel Inc (ZEUS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,529 | 90,931 | 121,051 | -5,595 | 3,856 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 515,968 | 424,439 | 424,439 | 308,352 |
| ROE | 8.02% | 17.62% | 28.52% | -1.32% | 1.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,529K ÷ $555,478K
= 8.02%
Return on equity (ROE) reflects Olympic Steel Inc.'s efficiency in generating profits from shareholders' equity. The company's ROE has fluctuated over the past five years, with a significant drop in 2020 and a recovery in subsequent years. In 2023, the ROE stands at 8.02%, representing a decrease from the previous year's 17.62%. The trend suggests a declining ability to generate profits relative to shareholders' equity. Although the current ROE is below the long-term average, it is still positive, indicating some profitability. Further analysis is warranted to understand the factors influencing the ROE, such as changes in profitability, leverage, and asset management efficiency.
Peer comparison
Dec 31, 2023