Aecom Technology Corporation (ACM)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 402,266 | 55,332 | 310,611 | 173,185 | -186,370 |
| Total stockholders’ equity | US$ in thousands | 2,184,200 | 2,212,330 | 2,476,650 | 2,712,470 | 3,292,560 |
| ROE | 18.42% | 2.50% | 12.54% | 6.38% | -5.66% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $402,266K ÷ $2,184,200K
= 18.42%
Aecom Technology Corporation's return on equity (ROE) has shown fluctuating performance over the past five years. In Sep 30, 2024, the ROE increased significantly to 18.42%, indicating a strong return generated on shareholders' equity. This improvement suggests that the company efficiently utilized its equity to generate profits for shareholders.
In contrast, in Sep 30, 2020, the ROE was negative at -5.66%, indicating that the company incurred losses and did not generate a positive return on equity for shareholders. However, the company managed to turn around its performance in the following years, with steady increases observed in ROE.
The Sep 30, 2022, ROE of 12.54% and Sep 30, 2021, ROE of 6.38% indicate a gradual improvement in the efficiency of Aecom's equity utilization. This suggests that the company was able to generate more profits for shareholders relative to the equity invested.
Overall, the increasing trend in ROE from negative to positive values over the years reflects a positive trajectory for Aecom Technology Corporation in terms of utilizing shareholders' equity effectively to generate returns. However, it is essential for the company to maintain this positive trend and continue to improve its profitability and efficiency in utilizing equity in the future.
Peer comparison
Sep 30, 2024