American Axle & Manufacturing (AXL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 35,000 | -33,600 | 64,300 | 5,900 | -561,100 |
| Total assets | US$ in thousands | 5,059,900 | 5,356,300 | 5,469,400 | 5,635,700 | 5,916,300 |
| ROA | 0.69% | -0.63% | 1.18% | 0.10% | -9.48% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $35,000K ÷ $5,059,900K
= 0.69%
American Axle & Manufacturing's return on assets (ROA) has fluctuated significantly over the past five years. In December 2020, the company's ROA was -9.48%, indicating a significant loss relative to its assets. However, there has been a notable improvement in the subsequent years, with the ROA turning positive in December 2021 at 0.10%. By December 2022, the ROA further improved to 1.18%, signaling a more efficient utilization of assets to generate profit.
However, there was a slight setback in December 2023, with the ROA dropping to -0.63%, indicating a dip in profitability relative to the assets employed. Nevertheless, the company managed to rebound in December 2024, with the ROA increasing to 0.69%, showing a recovery in asset efficiency and profitability.
Overall, American Axle & Manufacturing's ROA reflects a mix of challenges and improvements in utilizing its assets effectively to generate returns for its stakeholders. It is essential for the company to continue monitoring and optimizing its asset utilization to maintain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024