American Axle & Manufacturing (AXL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 562,800 | 604,900 | 627,300 | 457,800 | 370,500 |
| ROE | 6.22% | -5.55% | 10.25% | 1.29% | -151.44% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $35,000K ÷ $562,800K
= 6.22%
American Axle & Manufacturing's return on equity (ROE) has fluctuated significantly over the past five years.
In December 2020, the company reported a ROE of -151.44%, indicating that the company's net income was negative relative to shareholders' equity. This suggests that the company experienced a significant loss that year.
By December 2021, American Axle & Manufacturing managed to improve its ROE to 1.29%, although it remained relatively low. The company's profitability was still modest compared to its equity base.
The following year, by December 2022, the company's ROE showed a noticeable increase to 10.25%, indicating improved profitability and efficiency in generating returns for shareholders.
However, in December 2023, the company's ROE dipped to -5.55%, suggesting a decline in profitability and potential challenges faced by the company during that period.
Lastly, by December 2024, American Axle & Manufacturing was able to recover and achieve a ROE of 6.22%, indicating a moderate level of profitability relative to shareholders' equity.
Overall, the company's ROE performance has been volatile, with periods of significant losses and subsequent recoveries. It is important for investors and stakeholders to monitor these fluctuations closely to assess the company's financial health and performance.
Peer comparison
Dec 31, 2024