Allegheny Technologies Incorporated (ATI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 367,800 | 410,800 | 130,900 | -16,200 | -1,559,600 |
| Total stockholders’ equity | US$ in thousands | 1,850,400 | 1,373,000 | 1,045,900 | 685,600 | 521,100 |
| ROE | 19.88% | 29.92% | 12.52% | -2.36% | -299.29% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $367,800K ÷ $1,850,400K
= 19.88%
Allegheny Technologies Incorporated's return on equity (ROE) experienced significant fluctuations over the years. In December 2020, the company reported a negative ROE of -299.29%, which indicates that the company's net income was insufficient to cover shareholders' equity, raising concerns about financial health and efficiency. However, by December 2021, the ROE improved to -2.36%, though it remained negative, suggesting continued struggles.
The trend shifted positively in December 2022, with an ROE of 12.52%, indicating a turnaround in profitability and efficiency. This improvement was further evident by December 2023, where the ROE increased to 29.92%, reflecting a significant boost in profitability relative to shareholders' equity. By December 2024, the ROE stood at 19.88%, indicating that Allegheny Technologies Incorporated continued to generate strong returns for its shareholders.
Overall, the fluctuating ROE of Allegheny Technologies Incorporated signals varying levels of profitability and efficiency over the years. The company's ability to sustain and improve its ROE in the future will be crucial in demonstrating effective utilization of equity investments and creating value for its shareholders.