Arcosa Inc (ACA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 159,200 | 245,800 | 69,600 | 106,600 | 113,300 |
| Total stockholders’ equity | US$ in thousands | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 | 1,790,400 |
| ROE | 6.83% | 11.25% | 3.56% | 5.63% | 6.33% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $159,200K ÷ $2,332,000K
= 6.83%
The return on equity (ROE) of Arcosa Inc has fluctuated over the past five years. In 2023, the ROE was 6.83%, a decrease from 11.21% in 2022. This decline in ROE may indicate a lower profitability relative to the equity invested by shareholders. However, the 2023 ROE is still higher than the 2021 and 2020 figures of 3.54% and 5.59% respectively, suggesting an improvement in profitability compared to those years. The 2019 ROE of 6.27% is relatively similar to the 2023 figure.
Overall, while the ROE of Arcosa Inc has shown some variability, it is essential to further investigate the underlying factors contributing to these fluctuations, such as changes in net income, equity levels, and efficiency in asset utilization. Subsequent analysis could provide insights into the company's financial performance and its ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2023