Amentum Holdings Inc. (AMTM)
Return on equity (ROE)
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | -82,000 | 233,000 | 223,000 |
| Total stockholders’ equity | US$ in thousands | 4,460,000 | 3,275,000 | 3,259,000 |
| ROE | -1.84% | 7.11% | 6.84% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-82,000K ÷ $4,460,000K
= -1.84%
Amentum Holdings Inc.'s return on equity (ROE) has shown some fluctuations over the years. For the year ending December 31, 2022, the ROE stood at 6.84%, showing a moderate return on equity. In the subsequent year, ending December 31, 2023, the ROE slightly improved to 7.11%, indicating a slightly better return to shareholders.
However, there was a notable decline in the ROE for the period ending September 30, 2024, where it dropped to -1.84%. A negative ROE suggests that the company's net income was not sufficient to cover the shareholders' equity, which may raise concerns about its profitability and operational efficiency during that period.
Overall, Amentum Holdings Inc. needs to focus on improving its profitability and operational performance to ensure a positive and stable return on equity for its shareholders in the future. It is essential for the company to closely monitor its financial health and implement strategies to enhance its ROE back to positive levels.
Peer comparison
Sep 30, 2024