Aptiv PLC (APTV)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,938,000 | 594,000 | 590,000 | 1,804,000 | 990,000 |
| Total stockholders’ equity | US$ in thousands | 11,548,000 | 8,809,000 | 8,347,000 | 7,905,000 | 3,819,000 |
| ROE | 25.44% | 6.74% | 7.07% | 22.82% | 25.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,938,000K ÷ $11,548,000K
= 25.44%
Aptiv PLC's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE increased significantly to 25.19%, indicating that the company generated $25.19 in profit for every $100 of shareholders' equity. This sharp rise suggests improved efficiency in utilizing shareholders' funds to generate profits.
In contrast, in 2022 and 2021, the ROE was relatively low at 6.03% and 6.31% respectively. These lower figures indicate that the company was less effective in generating profits from shareholders' equity during these years.
The ROE bounced back in 2020 to 22.38%, showing a strong performance compared to the previous two years. However, the ROE was highest in 2019 at 25.92%, implying that Aptiv PLC was most efficient in utilizing shareholders' equity to generate profits in that year.
Overall, Aptiv PLC's ROE has displayed fluctuations, with the company performing exceptionally well in 2019 and 2023, but less effectively in 2022 and 2021. It is important for the company to consistently analyze and improve its ROE to ensure optimal utilization of shareholders' equity and sustainable profitability.
Peer comparison
Dec 31, 2023