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Anyone who wants to make the claim that "America doesn't make anything anymore" should say that somewhere other than Pittsburgh.
During the decade just ended, manufacturing concerns have dominated other local companies in the top position for return on equity.
Return on equity, or ROE, is a measure used to calculate a company's viability and vitality. It is determined by dividing net income by stockholder equity (retained earnings plus proceeds from stock offerings). Analysts use the figure to see how effectively management is using shareholders' money to make money: the higher the percentage, the better.
Coal producer Consol Energy has topped the list three times in the past decade. Specialty metals maker Allegheny Technologies, food giant H.J. Heinz, and railway and construction products manufacturer LB Foster have each led the category once.
For 2009, lumber and carbon products manufacturer Koppers Holdings leads the pack with an ROE of 60.8 percent. Koppers edged out H.J. Heinz, with 59.4 percent.
PDFClothing discounter rue21 went public in November and debuted in third place on the list with 33.3 percent. Rounding out the top five were Consol Energy, with 33.2 percent, and Michael Baker, with 22.6 percent.
Federated Investors, which also has earned the top position three times in the past decade, landed in sixth place this year, with 15.4 percent, followed by Calgon Carbon, with 14 percent.
Completing the top ten were Dick's Sporting Goods, with 13.7 percent, Matthews International, with 13.3 percent, and Allegheny Energy, with 13.2 percent.
With rue21 and Dick's, this year marks the return of retailers to the top 10 for the first time since 2004, when American Eagle Outfitters and Dick's were in ninth and 10th place.
Indeed this year's list is notable for its industry mix -- manufacturing, financial services, engineering, retail and energy are all represented.
When a company posts a loss for the year, its return on equity turns negative. The recession's impact is reflected in the fact that more than a quarter of the firms on this year's list, 14 out of 50, had negative returns on equity. Tollgrade Communications led the unfortunates with a negative ROE of 38.1 percent.
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