American Axle & Manufacturing (AXL)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-33,600	64,300	5,900	-561,300	-484,500
Total assets	US$ in thousands	5,356,300	5,469,400	5,635,700	5,916,300	6,644,600
ROA		-0.63%	1.18%	0.10%	-9.49%	-7.29%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-33,600K ÷ $5,356,300K
= -0.63%

American Axle & Manufacturing Holdings Inc's return on assets (ROA) has shown significant fluctuation over the past five years. In 2023, the company's ROA was -0.63%, indicating a negative return on its assets for that year. This represents a decrease from the previous year's ROA of 1.13%, signifying a notable decline in the company's profitability and efficiency in generating profits from its assets.

The company's performance in 2023 was also weaker compared to 2021, when it achieved an ROA of 0.10%. However, it is worth noting that both 2023 and 2021 had positive ROA figures, indicating some level of profitability from the company's asset base.

In contrast, American Axle & Manufacturing Holdings Inc experienced significant challenges in 2020 and 2019, with ROA figures of -9.49% and -7.29% respectively. These negative ROA values suggest that the company's assets were not effectively utilized to generate profits during those years, which could be attributed to various factors such as operational inefficiencies or economic conditions.

Overall, the fluctuating trend in American Axle & Manufacturing Holdings Inc's ROA highlights the importance of closely monitoring the company's asset management and profitability performance to ensure sustainable financial health and value creation for its stakeholders.