Howmet Aerospace Inc (HWM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 765,000 | 469,000 | 258,000 | 261,000 | 470,000 |
| Total stockholders’ equity | US$ in thousands | 4,037,000 | 3,601,000 | 3,508,000 | 3,577,000 | 4,591,000 |
| ROE | 18.95% | 13.02% | 7.35% | 7.30% | 10.24% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $765,000K ÷ $4,037,000K
= 18.95%
The return on equity (ROE) of Howmet Aerospace Inc has shown a positive trend over the past five years. The ROE increased from 10.35% in 2019 to 18.90% in 2023, indicating an improvement in the company's efficiency in generating profits from shareholders' equity. This suggests that the company has been effectively utilizing its shareholders' investments to generate earnings.
The steady increase in ROE indicates that Howmet Aerospace Inc has been managing its assets and liabilities efficiently, resulting in better profitability for shareholders. The significant jump in ROE from 2022 to 2023 is particularly noteworthy, demonstrating a substantial improvement in the company's overall financial performance and effectiveness in utilizing shareholder equity.
Overall, the increasing trend in ROE reflects positively on Howmet Aerospace Inc's financial health and its ability to generate returns for its shareholders over the years.
Peer comparison
Dec 31, 2023