Alcoa Corp (AA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 60,000 | -651,000 | -123,000 | 429,000 | -170,000 |
| Total stockholders’ equity | US$ in thousands | 5,159,000 | 4,251,000 | 5,076,000 | 4,672,000 | 3,311,000 |
| ROE | 1.16% | -15.31% | -2.42% | 9.18% | -5.13% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $60,000K ÷ $5,159,000K
= 1.16%
Alcoa Corp's return on equity (ROE) has exhibited fluctuations over the past five years. The company reported a negative ROE of -5.13% on December 31, 2020, indicating that the company generated a net loss in relation to its equity.
However, the following year saw an improvement in ROE, reaching 9.18% on December 31, 2021, suggesting the company generated a profit relative to its equity during that period. This positive trend was short-lived as the ROE decreased to -2.42% on December 31, 2022, indicating a decline in profitability compared to the previous year.
The financial performance worsened significantly in the subsequent years with a ROE of -15.31% on December 31, 2023, reflecting a substantial decrease in profitability and efficiency in generating returns from shareholders' equity. However, there was a slight recovery in the most recent period with a ROE of 1.16% on December 31, 2024.
Overall, Alcoa Corp's ROE has been volatile, with periods of both profitability and loss. The company should focus on improving its operational efficiency, profitability, and financial management to generate sustainable returns for its shareholders in the future.
Peer comparison
Dec 31, 2024