Allegheny Technologies Incorporated (ATI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 410,800 | 130,900 | -38,200 | -1,572,600 | 252,500 |
| Total stockholders’ equity | US$ in thousands | 1,373,000 | 1,045,900 | 685,600 | 521,100 | 2,090,100 |
| ROE | 29.92% | 12.52% | -5.57% | -301.78% | 12.08% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $410,800K ÷ $1,373,000K
= 29.92%
ATI Inc has exhibited fluctuations in its return on equity (ROE) over the past five years. In 2019, the company had an ROE of 12.32%, indicating a decent profitability in that year. However, in 2020, the ROE plummeted significantly to -301.78%, suggesting that the company experienced a substantial loss relative to its equity. This could be a concerning sign for investors and stakeholders, pointing towards potential financial distress.
The trend reversed in 2021, where the ROE improved to -5.57%, still in negative territory but showing signs of recovery compared to the previous year. Subsequently, in 2022, there was a further positive shift in ROE to 12.52%, indicating a return to profitability and a favorable performance for the company.
The most recent data in 2023 shows a ROE of 29.92%, representing a substantial improvement in profitability compared to previous years. This surge in ROE could be attributed to various factors such as increased revenue, cost-cutting measures, or more efficient utilization of assets.
Overall, the fluctuating ROE trend of ATI Inc indicates a mix of challenges and successes in recent years. Investors should closely monitor future financial performance to assess the company's ability to sustain and improve its profitability over the long term.