Alcoa Corp (AA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -651,000 | -123,000 | 429,000 | -170,000 | -1,125,000 |
| Total stockholders’ equity | US$ in thousands | 4,251,000 | 5,076,000 | 4,672,000 | 3,311,000 | 4,112,000 |
| ROE | -15.31% | -2.42% | 9.18% | -5.13% | -27.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-651,000K ÷ $4,251,000K
= -15.31%
Alcoa Corp's return on equity (ROE) has varied significantly over the past five years. The ROE was negative in the last two years, with -15.31% in 2023 and -2.42% in 2022, indicating that the company's net income was not sufficient to generate shareholder value. In 2021, the ROE improved to 9.18%, suggesting a better performance in utilizing shareholder equity to generate profits. However, the ROE was negative in 2020 at -5.13% and notably low in 2019 at -27.36%. Overall, the trend indicates inconsistency in the company's ability to generate returns on equity over the years, reflecting potential challenges in profitability and operational efficiency.
Peer comparison
Dec 31, 2023