Amentum Holdings Inc. (AMTM)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net income US$ in thousands -82,000 -82,000 -313,700 -84,423 199,000
Total stockholders’ equity US$ in thousands 4,460,000 4,460,000 374,239 3,259,000
ROE -1.84% -1.84% -83.82% -2.59%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-82,000K ÷ $4,460,000K
= -1.84%

Based on the provided data for Amentum Holdings Inc.'s return on equity (ROE), we observe the following trends:

1. As of December 31, 2021, the ROE figure is not available and is denoted as "—". This could indicate that the company's financial performance for that period may be pending or undisclosed.

2. By December 31, 2022, the ROE stands at -2.59%. A negative ROE suggests that the company's net income is insufficient to generate a return for its shareholders' equity.

3. The ROE further deteriorated to -83.82% by December 31, 2023, reflecting a significant decline in the company's profitability and efficiency in utilizing shareholder equity to generate profits.

4. By September 30, 2024, the ROE improved slightly to -1.84%, indicating a slight recovery in profitability compared to the previous period. However, the figure remains negative, suggesting ongoing challenges in generating returns for shareholders.

5. As of December 31, 2024, the ROE remains unchanged at -1.84%. The stability in the ROE figure may indicate that the company is striving to maintain its financial performance, but the negative value still highlights the company's struggle to generate adequate returns on equity.

In summary, Amentum Holdings Inc. has experienced a downward trend in ROE over the periods presented, with negative values indicating potential inefficiencies in utilizing shareholder equity to generate profits. Shareholders and investors may be concerned about the company's ability to improve its financial performance and generate positive returns in the future.