Aptiv PLC (APTV)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,787,000 | 2,424,000 | 3,690,000 | 2,994,000 | 2,938,000 | 2,282,000 | 954,000 | 667,000 | 594,000 | 376,000 | 176,000 | 384,000 | 590,000 | 858,000 | 1,056,000 | 527,000 | 1,804,000 | 1,735,000 | 1,682,000 | 2,322,000 |
| Total stockholders’ equity | US$ in thousands | 8,796,000 | 8,882,000 | 11,467,000 | 11,120,000 | 11,548,000 | 10,778,000 | 9,232,000 | 8,983,000 | 8,809,000 | 8,195,000 | 8,099,000 | 8,396,000 | 8,347,000 | 8,294,000 | 8,322,000 | 8,077,000 | 7,905,000 | 7,363,000 | 6,942,000 | 4,971,000 |
| ROE | 20.32% | 27.29% | 32.18% | 26.92% | 25.44% | 21.17% | 10.33% | 7.43% | 6.74% | 4.59% | 2.17% | 4.57% | 7.07% | 10.34% | 12.69% | 6.52% | 22.82% | 23.56% | 24.23% | 46.71% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,787,000K ÷ $8,796,000K
= 20.32%
Aptiv PLC's return on equity (ROE) has shown fluctuations over the period analyzed. Starting at a high of 46.71% in March 2020, the ROE decreased steadily to a low of 2.17% in June 2022. However, there was a gradual improvement in the ROE from that point onwards. Notably, there was a significant jump in ROE in the second half of 2023, reaching a peak of 32.18% in June 2024.
The ROE measures the profitability of a company relative to the shareholder equity, indicating how well the company is using its equity to generate profits. Aptiv PLC's increasing ROE in recent periods suggests that the company has been more efficient in utilizing its equity to generate earnings for shareholders. The declining trend observed earlier could indicate possible challenges or inefficiencies in capital utilization that impacted profitability.
Overall, the upward trend in ROE from mid-2022 to the end of 2024 signals improved financial performance and efficiency in generating profits relative to the shareholder equity for Aptiv PLC. It would be important to monitor future ROE trends to assess the company's continued performance and shareholder value creation.
Peer comparison
Dec 31, 2024