Adient PLC (ADNT)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 205,000 | -120,000 | 1,108,000 | -547,000 | -491,000 |
| Total stockholders’ equity | US$ in thousands | 2,228,000 | 2,073,000 | 2,376,000 | 1,213,000 | 1,848,000 |
| ROE | 9.20% | -5.79% | 46.63% | -45.09% | -26.57% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $205,000K ÷ $2,228,000K
= 9.20%
In analyzing Adient plc's return on equity (ROE) over the past five years, several noteworthy trends can be observed.
The ROE for the fiscal year ending September 30, 2023, stands at 9.20%. This signifies that the company generated a return of 9.20% on each unit of equity during this period. Although an improvement from the previous fiscal year, it is still lower than the 46.63% ROE recorded in 2021.
The negative ROE of -5.79% for September 30, 2022, indicates a loss during that year. However, this was a substantial improvement from the very low and negative ROE of -45.09% and -26.57% in 2020 and 2019, respectively.
The significant fluctuations in ROE over these years may indicate inconsistent profitability and efficiency in utilizing equity. Investors and analysts may need to further investigate the factors contributing to these fluctuations, such as changes in the company's capital structure, profitability, or asset management.
In conclusion, while there has been variation in Adient plc's ROE over the past five years, the recent positive trend suggests potential improvement in the company's ability to generate returns on shareholder equity.
Peer comparison
Sep 30, 2023