Amentum Holdings Inc. (AMTM)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
Net income (ttm) US$ in thousands -78,000 -82,000 257,000 259,000 246,000 233,000
Total stockholders’ equity US$ in thousands 4,475,000 4,460,000 3,208,000 3,315,000 3,353,000 375,000
ROE -1.74% -1.84% 8.01% 7.81% 7.34% 62.13%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-78,000K ÷ $4,475,000K
= -1.74%

Based on the provided data, Amentum Holdings Inc.'s return on equity (ROE) has shown significant fluctuations over the periods reported. In the most recent period, September 30, 2024, the company experienced a negative ROE of -1.84%, which improved slightly to -1.74% by December 31, 2024. These negative ROE figures suggest that the company's net income may not be sufficient to generate returns for its shareholders.

Compared to the previous periods, the ROE for September 30, 2023, stood at a robust 62.13%, indicating that Amentum Holdings Inc. was highly efficient in utilizing shareholder equity to generate profits. However, there was a substantial decline in ROE to 7.34% by December 31, 2023, and further to 7.81% by March 31, 2024, suggesting a possible decrease in profitability or efficiency.

The subsequent slight increase in ROE to 8.01% by June 30, 2024, indicates some improvement in the company's profitability but remained relatively low compared to the initial period. Overall, Amentum Holdings Inc.'s ROE trend indicates fluctuations and challenges in maintaining consistent profitability and shareholder value. Further analysis of the company's financial performance and operations would be necessary to understand the underlying reasons for these fluctuations in ROE.