Autoliv Inc (ALV)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 488,000 | 423,000 | 435,000 | 187,000 | 462,000 |
| Total stockholders’ equity | US$ in thousands | 2,557,000 | 2,613,000 | 2,633,000 | 2,409,000 | 2,109,200 |
| ROE | 19.08% | 16.19% | 16.52% | 7.76% | 21.90% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $488,000K ÷ $2,557,000K
= 19.08%
Autoliv Inc.'s return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE of 19.05% increased from 16.19% in 2022 and outperformed the 16.56% in 2021. This improvement indicates that the company has become more efficient in generating profits from shareholders' equity. The significant increase in ROE from 2020 to 2023 suggests that Autoliv Inc. has been able to enhance its profitability and operational efficiency. However, the ROE in 2023 is still below the level of 21.88% seen in 2019, indicating a slight performance gap compared to the previous year. Overall, Autoliv Inc.'s ROE performance reflects a positive trend with room for further improvement to reach previous levels of profitability.
Peer comparison
Dec 31, 2023