Howmet Aerospace Inc (HWM)
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 | 1,155,000 | 1,077,000 | 933,000 | 860,000 | 765,000 | 640,000 | 532,000 | 486,000 | 469,000 | 435,000 | 382,000 | 309,000 | 258,000 | 287,000 | 296,000 | 126,000 | 261,000 | 464,000 | 523,000 | 498,000 |
| Total stockholders’ equity | US$ in thousands | 4,554,000 | 4,503,000 | 4,277,000 | 4,086,000 | 4,037,000 | 3,872,000 | 3,775,000 | 3,761,000 | 3,601,000 | 3,273,000 | 3,421,000 | 3,457,000 | 3,508,000 | 3,579,000 | 3,598,000 | 3,662,000 | 3,580,000 | 3,501,000 | 3,449,000 | 4,783,000 |
| ROE | 25.36% | 23.92% | 21.81% | 21.05% | 18.95% | 16.53% | 14.09% | 12.92% | 13.02% | 13.29% | 11.17% | 8.94% | 7.35% | 8.02% | 8.23% | 3.44% | 7.29% | 13.25% | 15.16% | 10.41% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,155,000K ÷ $4,554,000K
= 25.36%
ROE (Return on Equity) is a key financial ratio that measures the profitability of a company in relation to its shareholders' equity. The ROE for Howmet Aerospace Inc has shown fluctuations over the past few years, starting at 10.41% as of March 31, 2020, increasing to 15.16% by June 30, 2020, and then fluctuating between 7% and 13% throughout 2020 and early 2021.
From March 31, 2022, the ROE started to show a more consistent upward trend, reaching 25.36% by December 31, 2024. This indicates that the company has been effectively generating profit from the shareholders' equity during this period. The increasing trend in ROE is a positive sign as it suggests that the company is utilizing equity funding efficiently to generate profits for its shareholders.
Overall, the ROE of Howmet Aerospace Inc has shown improvement over the analyzed period, reflecting positively on the company's ability to generate returns on the equity provided by its shareholders. It is essential for investors to monitor this ratio over time to evaluate the company's performance and profitability.
Peer comparison
Dec 31, 2024