American Axle & Manufacturing (AXL)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 35,000 | 29,600 | 2,200 | -8,000 | -38,700 | -5,700 | 38,200 | 53,100 | 64,300 | 4,100 | -24,800 | -31,700 | 5,900 | 88,200 | 207,800 | -21,400 | -561,300 | -1,051,700 | -1,293,100 | -1,027,400 |
| Total stockholders’ equity | US$ in thousands | 562,800 | 616,300 | 609,600 | 621,400 | 604,900 | 613,700 | 644,800 | 621,700 | 627,300 | 486,500 | 469,200 | 484,500 | 457,800 | 432,800 | 441,300 | 401,300 | 370,500 | 340,900 | 196,200 | 389,800 |
| ROE | 6.22% | 4.80% | 0.36% | -1.29% | -6.40% | -0.93% | 5.92% | 8.54% | 10.25% | 0.84% | -5.29% | -6.54% | 1.29% | 20.38% | 47.09% | -5.33% | -151.50% | -308.51% | -659.07% | -263.57% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $35,000K ÷ $562,800K
= 6.22%
American Axle & Manufacturing's return on equity (ROE) has shown significant fluctuations over the past few years. The company's ROE was negative in the earlier periods, indicating that the company's net income was insufficient to cover the shareholders' equity. However, starting from March 31, 2021, the ROE turned positive and began to improve gradually.
From June 30, 2021, to December 31, 2024, the ROE showed a consistent positive trend, with values ranging from 0.36% to 6.22%. This signifies that the company has been generating profits efficiently in relation to the shareholders' equity during this period.
While the ROE has improved since the negative values in earlier years, it is important to note that the percentage values remain relatively low. Therefore, American Axle & Manufacturing may still have room for further enhancement in utilizing its equity to generate higher returns for shareholders. An ROE of 6.22% by December 31, 2024, indicates that the company is on a path of moderate profitability efficiency, but there is potential for further optimization.
Peer comparison
Dec 31, 2024