Axalta Coating Systems Ltd (AXTA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 391,000 | 267,000 | 191,600 | 263,900 | 121,600 |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,727,000 | 1,453,500 | 1,492,900 | 1,433,000 |
| ROE | 20.45% | 15.46% | 13.18% | 17.68% | 8.49% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $391,000K ÷ $1,912,000K
= 20.45%
The return on equity (ROE) of Axalta Coating Systems Ltd has shown a positive trend over the past five years, increasing from 8.49% in December 2020 to 20.45% in December 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits. The significant improvement in ROE signals enhanced efficiency in generating earnings relative to the shareholders' investment. However, it is important to note that the ROE experienced fluctuations during this period, with a peak in 2024. Overall, the increasing trend in ROE reflects positively on Axalta Coating Systems Ltd's financial performance and ability to create value for its shareholders.
Peer comparison
Dec 31, 2024