Alcoa Corp (AA)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 60,000 | -292,000 | -550,000 | -672,000 | -651,000 | -896,000 | -1,474,000 | -823,000 | -123,000 | -120,000 | 963,000 | 723,000 | 429,000 | 817,000 | 431,000 | -75,000 | -170,000 | -469,000 | -641,000 | -846,000 |
| Total stockholders’ equity | US$ in thousands | 5,159,000 | 5,250,000 | 3,899,000 | 3,994,000 | 4,251,000 | 4,509,000 | 4,842,000 | 4,690,000 | 5,076,000 | 5,371,000 | 5,666,000 | 4,579,000 | 4,638,000 | 3,878,000 | 3,769,000 | 3,248,000 | 3,287,000 | 3,395,000 | 3,705,000 | 4,275,000 |
| ROE | 1.16% | -5.56% | -14.11% | -16.83% | -15.31% | -19.87% | -30.44% | -17.55% | -2.42% | -2.23% | 17.00% | 15.79% | 9.25% | 21.07% | 11.44% | -2.31% | -5.17% | -13.81% | -17.30% | -19.79% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $60,000K ÷ $5,159,000K
= 1.16%
Alcoa Corp's return on equity (ROE) has displayed a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The company experienced negative ROE figures for the majority of the quarters during this period, indicating that its net income was insufficient to generate a positive return for shareholders.
The ROE started at a low of -19.79% in March 2020 and gradually improved to reach a peak of 21.07% in September 2021. This substantial improvement may suggest that Alcoa's profitability and efficiency in utilizing shareholder equity had improved considerably during this period.
However, the ROE declined in the subsequent quarters, dropping to -30.44% in June 2023, which indicates a significant decrease in profitability and efficiency. The negative ROE figures from March 2023 to December 2024 suggest that Alcoa faced challenges in generating profits relative to the equity invested by shareholders.
The positive ROE figure of 1.16% in December 2024 may indicate a slight recovery in profitability; however, it is important to note that the overall trend of negative ROE highlights potential concerns regarding the company's financial performance and effectiveness in utilizing shareholder funds.
In conclusion, Alcoa Corp's ROE fluctuated significantly during the period under review, indicating varying levels of profitability and efficiency in utilizing shareholder equity. Further analysis of the company's financial statements and operational performance is recommended to gain a more in-depth understanding of its financial health.
Peer comparison
Dec 31, 2024