Cnh Industrial N.V. Common Shares(Cnh) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for CNH compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2021', CNH's return on equity was 25.4%, measuring profitability for shareholders. Industry average for Construction/Ag Equipment/Trucks in '2021' stood at 2.0%.
• In '2022', CNH's return on equity was 29.6%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Construction/Ag Equipment/Trucks in '2022' stood at 23.4%. Industry average increased by 21.4% compared to previous year.
• In '2023', CNH's return on equity was 30.4%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Construction/Ag Equipment/Trucks in '2023' stood at 21.7%. Industry average declined by 1.7% from previous year.
• In '2024', CNH's return on equity was 15.9%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Construction/Ag Equipment/Trucks in '2024' stood at 9.4%. Industry average declined by 12.3% from previous year.
Overall, CNH's return on equity has been volatile but showed a downward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.