Howmet Aerospace Inc (HWM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,155,000 | 765,000 | 469,000 | 258,000 | 261,000 |
| Total stockholders’ equity | US$ in thousands | 4,554,000 | 4,037,000 | 3,601,000 | 3,508,000 | 3,580,000 |
| ROE | 25.36% | 18.95% | 13.02% | 7.35% | 7.29% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,155,000K ÷ $4,554,000K
= 25.36%
From 2020 to 2024, Howmet Aerospace's Return on Equity (ROE) has shown an increasing trend, indicating improving profitability in relation to shareholder equity. The ROE has risen from 7.29% in 2020 to 25.36% in 2024. This indicates that the company has become more effective in generating profits from the shareholders' investments over the years.
The steady increase in ROE signifies that Howmet Aerospace is utilizing its equity more efficiently to generate earnings. A higher ROE suggests that the company is more profitable and is effectively utilizing its resources to generate profits for its shareholders.
The significant improvement in ROE from 2020 to 2024 suggests that Howmet Aerospace has been successful in enhancing its operational efficiency, managing its assets, and controlling its costs. Investors and stakeholders may view this positive trend in ROE favorably as it indicates strong financial performance and potential for sustained growth in shareholder value.
Peer comparison
Dec 31, 2024