Return on Equity (ROE)
since 2005
Calculation
Newmont Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Newmont stockholders1 | ÷ | Newmont stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | -8.59% | = | 100 | × | (2,494) | ÷ | 29,027) |
| Dec 31, 2022 | -2.22% | = | 100 | × | (429) | ÷ | 19,354) |
| Dec 31, 2021 | 5.29% | = | 100 | × | 1,166) | ÷ | 22,022) |
| Dec 31, 2020 | 12.30% | = | 100 | × | 2,829) | ÷ | 23,008) |
| Dec 31, 2019 | 13.10% | = | 100 | × | 2,805) | ÷ | 21,420) |
| Dec 31, 2018 | 3.25% | = | 100 | × | 341) | ÷ | 10,502) |
| Dec 31, 2017 | -0.92% | = | 100 | × | (98) | ÷ | 10,609) |
| Dec 31, 2016 | -5.85% | = | 100 | × | (627) | ÷ | 10,721) |
| Dec 31, 2015 | 1.94% | = | 100 | × | 220) | ÷ | 11,350) |
| Dec 31, 2014 | 4.94% | = | 100 | × | 508) | ÷ | 10,274) |
| Dec 31, 2013 | -24.28% | = | 100 | × | (2,462) | ÷ | 10,141) |
| Dec 31, 2012 | 13.13% | = | 100 | × | 1,809) | ÷ | 13,773) |
| Dec 31, 2011 | 2.84% | = | 100 | × | 366) | ÷ | 12,896) |
| Dec 31, 2010 | 17.06% | = | 100 | × | 2,277) | ÷ | 13,345) |
| Dec 31, 2009 | 12.12% | = | 100 | × | 1,297) | ÷ | 10,703) |
| Dec 31, 2008 | 12.01% | = | 100 | × | 853) | ÷ | 7,102) |
| Dec 31, 2007 | -24.99% | = | 100 | × | (1,886) | ÷ | 7,548) |
| Dec 31, 2006 | 8.47% | = | 100 | × | 791) | ÷ | 9,337) |
| Dec 31, 2005 | 3.84% | = | 100 | × | 322) | ÷ | 8,376) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance of Newmont Corp. from 2005 to 2023 is characterized by extreme volatility in Return on Equity (ROE), reflecting a pattern of cyclical earnings and intermittent periods of substantial net losses. While stockholders' equity experienced a long-term upward trajectory, growing from 8.376 billion USD in 2005 to 29.027 billion USD by 2023, the net income attributable to stockholders fluctuated sharply, resulting in an inconsistent return on invested capital.
- Analysis of Negative ROE Cycles
- Significant contractions in ROE occurred in 2007 (-24.99%) and 2013 (-24.28%), corresponding to substantial net losses of 1.886 billion USD and 2.462 billion USD, respectively. A renewed downward trend is observed in the final two years of the period, with ROE turning negative in 2022 (-2.22%) and declining further to -8.59% in 2023, driven by a net loss of 2.494 billion USD.
- Periods of Peak Profitability
- The highest ROE was recorded in 2010 at 17.06%, supported by a net income of 2.277 billion USD. A subsequent period of strength occurred between 2019 and 2020, where ROE reached 13.10% and 12.30%, respectively. These years coincided with the highest absolute net income figures in the analyzed period, both exceeding 2.8 billion USD.
- Equity Base Expansion and Impact on Returns
- A notable expansion of the equity base occurred between 2018 and 2019, where stockholders' equity more than doubled from 10.502 billion USD to 21.420 billion USD. This significant increase in the capital base indicates that despite strong net income in 2019 and 2020, the company required a substantially larger equity investment to maintain double-digit ROE compared to the levels observed in 2010.
- Long-term Stability Trends
- Between 2014 and 2018, the ROE remained relatively suppressed, fluctuating within a narrow band between -5.85% and 4.94%. This period of low return coincided with a period of relative stability in stockholders' equity, which remained between 10.141 billion USD and 11.350 billion USD.
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Comparison to Competitors
Newmont Corp., ROE, long-term trends, comparison to competitors
| Newmont Corp. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2023 | -8.59% | 11.07% |
| Dec 31, 2022 | -2.22% | 22.30% |
| Dec 31, 2021 | 5.29% | 30.80% |
| Dec 31, 2020 | 12.30% | 5.89% |
| Dec 31, 2019 | 13.10% | -2.57% |
| Dec 31, 2018 | 3.25% | 26.56% |
| Dec 31, 2017 | -0.92% | 22.78% |
| Dec 31, 2016 | -5.85% | -68.65% |
| Dec 31, 2015 | 1.94% | -156.31% |
| Dec 31, 2014 | 4.94% | -7.15% |
| Dec 31, 2013 | -24.28% | 12.70% |
| Dec 31, 2012 | 13.13% | 17.33% |
| Dec 31, 2011 | 2.84% | 29.15% |
| Dec 31, 2010 | 17.06% | 34.68% |
| Dec 31, 2009 | 12.12% | 30.15% |
| Dec 31, 2008 | 12.01% | -191.70% |
| Dec 31, 2007 | -24.99% | 16.33% |
| Dec 31, 2006 | 8.47% | 59.57% |
| Dec 31, 2005 | 3.84% | 54.00% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Newmont Corp., ROE, long-term trends, comparison to industry (materials)
| Newmont Corp. | Materials | |
|---|---|---|
| Dec 31, 2023 | -8.59% | 17.36% |
| Dec 31, 2022 | -2.22% | 16.42% |
| Dec 31, 2021 | 5.29% | 16.54% |
| Dec 31, 2020 | 12.30% | 8.40% |
| Dec 31, 2019 | 13.10% | 5.74% |
| Dec 31, 2018 | 3.25% | 12.42% |
| Dec 31, 2017 | -0.92% | 27.34% |
| Dec 31, 2016 | -5.85% | -11.75% |
| Dec 31, 2015 | 1.94% | -73.64% |
| Dec 31, 2014 | 4.94% | 5.03% |
| Dec 31, 2013 | -24.28% | 17.62% |
| Dec 31, 2012 | 13.13% | 21.12% |
| Dec 31, 2011 | 2.84% | 29.47% |
| Dec 31, 2010 | 17.06% | 30.11% |
| Dec 31, 2009 | 12.12% | 27.87% |
| Dec 31, 2008 | 12.01% | -82.36% |
| Dec 31, 2007 | -24.99% | 18.96% |
| Dec 31, 2006 | 8.47% | 33.59% |
| Dec 31, 2005 | 3.84% | 29.22% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).