Autoliv Inc (ALV)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 646,000 | 488,000 | 423,000 | 435,000 | 187,000 |
| Total stockholders’ equity | US$ in thousands | 2,276,000 | 2,557,000 | 2,613,000 | 2,633,000 | 2,408,900 |
| ROE | 28.38% | 19.08% | 16.19% | 16.52% | 7.76% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $646,000K ÷ $2,276,000K
= 28.38%
Autoliv Inc's return on equity (ROE) has shown a positive trend over the past five years, increasing from 7.76% in 2020 to 28.38% in 2024. This improvement signifies that the company has been able to generate higher profits relative to its shareholders' equity, indicating efficient utilization of equity capital. The significant rise in ROE from 2020 to 2024 reflects Autoliv Inc's ability to generate increased earnings from the equity invested in the business. A higher ROE indicates that the company is generating more profits with each unit of equity capital, which is a positive signal for investors and shows the company's ability to create value for its shareholders. Overall, Autoliv Inc's improving ROE demonstrates strong financial performance and effective management of shareholders' equity over the years.
Peer comparison
Dec 31, 2024