Arcosa Inc (ACA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 93,700 | 159,200 | 245,800 | 69,600 | 106,600 |
| Total stockholders’ equity | US$ in thousands | 2,428,200 | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 |
| ROE | 3.86% | 6.83% | 11.25% | 3.56% | 5.63% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $93,700K ÷ $2,428,200K
= 3.86%
Based on the provided data, Arcosa Inc's return on equity (ROE) has fluctuated over the years. In 2020, the ROE was 5.63%, which declined to 3.56% in 2021. However, there was a notable improvement in 2022 when the ROE increased to 11.25%. Subsequently, in 2023, the ROE decreased slightly to 6.83% and then dropped further to 3.86% in 2024.
The fluctuating trend in Arcosa Inc's ROE indicates variability in the company's profitability in relation to its shareholders' equity. A higher ROE generally signifies the company's ability to generate more profits from its equity investment. The decline in ROE in certain years could be attributed to factors such as changes in profitability, changes in asset turnover, or changes in financial leverage.
Further analysis would be needed to understand the specific drivers behind the changes in Arcosa Inc's ROE and to assess the sustainability of its profitability levels. Additionally, comparing the company's ROE with industry benchmarks and its peers could provide valuable insights into its competitive position and overall financial performance.
Peer comparison
Dec 31, 2024