American Axle & Manufacturing (AXL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	604,900	627,300	457,800	370,500	977,600
ROE		-5.55%	10.25%	1.29%	-151.50%	-49.56%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-33,600K ÷ $604,900K
= -5.55%

American Axle & Manufacturing Holdings Inc's return on equity (ROE) has been quite volatile over the last five years. In 2023, the company reported a negative ROE of -5.55%, indicating that it generated a net loss relative to shareholders' equity. This was a significant decrease from the positive ROE of 9.82% in 2022.

The ROE had shown a slight improvement in 2022, but it remained relatively low compared to previous years. In 2021, the ROE stood at 1.25%, indicating a modest return on equity for shareholders. However, in 2020, the ROE plummeted to -151.50%, reflecting a substantial loss relative to shareholders' equity.

The most significant decline in ROE was observed in 2019 when it hit -49.56%. This suggests that the company's net income was particularly inadequate in generating returns for shareholders that year. Overall, American Axle & Manufacturing Holdings Inc's ROE trend has been inconsistent, with periods of both positive and negative returns, highlighting potential volatility and operational challenges within the company.