Aecom Technology Corporation (ACM)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 55,332 | 310,611 | 173,185 | -186,370 | -261,050 |
| Total stockholders’ equity | US$ in thousands | 2,212,330 | 2,476,650 | 2,712,470 | 3,292,560 | 3,690,580 |
| ROE | 2.50% | 12.54% | 6.38% | -5.66% | -7.07% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $55,332K ÷ $2,212,330K
= 2.50%
The return on equity (ROE) for AECOM has fluctuated significantly over the past five years. In 2019 and 2020, the company reported negative ROE values of -7.07% and -5.66% respectively, indicating that the company's net income was not sufficient to cover shareholders' equity during these periods.
However, there was a substantial improvement in ROE in 2021, reaching 6.38%, and a further increase in 2022 to 12.54%, indicating a positive trend and an increased ability to generate profits from shareholders' equity.
The most recent ROE figure for September 30, 2023, is 2.50%, which represents a decline from the previous year. This decrease in ROE could be attributed to a decrease in net income or an increase in shareholders' equity.
Overall, the variability in AECOM's ROE over the past five years suggests fluctuations in the company's profit generation relative to its shareholder investments. It is essential for stakeholders to closely monitor the company's financial performance and assess the factors influencing ROE to make informed investment decisions.
Peer comparison
Sep 30, 2023