Adient PLC (ADNT)
Return on equity (ROE)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 18,000 | 74,000 | 158,000 | 213,000 | 205,000 | 115,000 | 12,000 | -54,000 | -120,000 | 795,000 | 754,000 | 904,000 | 1,108,000 | 112,000 | -142,000 | -230,000 | -547,000 | -515,000 | -511,000 | -641,000 |
| Total stockholders’ equity | US$ in thousands | 2,134,000 | 1,927,000 | 2,075,000 | 2,285,000 | 2,228,000 | 2,174,000 | 2,197,000 | 2,192,000 | 2,073,000 | 2,123,000 | 2,285,000 | 2,344,000 | 2,376,000 | 1,467,000 | 1,489,000 | 1,452,000 | 1,213,000 | 1,250,000 | 1,541,000 | 1,743,000 |
| ROE | 0.84% | 3.84% | 7.61% | 9.32% | 9.20% | 5.29% | 0.55% | -2.46% | -5.79% | 37.45% | 33.00% | 38.57% | 46.63% | 7.63% | -9.54% | -15.84% | -45.09% | -41.20% | -33.16% | -36.78% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $18,000K ÷ $2,134,000K
= 0.84%
Adient PLC's return on equity (ROE) has shown significant fluctuations over the past few quarters. In the most recent quarter, ending September 30, 2024, the ROE was a mere 0.84%, indicating a low return generated on shareholder equity.
Looking back over the previous quarters, there has been a general trend of declining ROE from a peak of 46.63% in December 2021. The ROE dropped to negative levels in some quarters, such as March 2021, indicating that the company was not generating sufficient returns to cover the cost of equity capital.
The significant improvement in ROE in the latter half of 2022 and through 2023, with ROE reaching above 30%, suggests that the company was able to effectively leverage its equity to generate higher returns during that period.
However, the recent decline in ROE highlights potential challenges Adient PLC may be facing in efficiently utilizing its equity to generate profits for shareholders. Further analysis of the company's financial performance, efficiency of operations, and strategic decisions would be necessary to understand the factors driving these fluctuations in ROE.
Peer comparison
Sep 30, 2024