Howmet Aerospace Inc (HWM)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 470,000 | 379,000 | 445,000 | 686,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,577,000 | 3,501,000 | 3,449,000 | 4,783,000 | 4,591,000 | 4,696,000 | 4,854,000 | 5,166,000 |
| ROE | 18.95% | 16.53% | 14.09% | 12.92% | 13.02% | 13.29% | 11.17% | 8.94% | 7.35% | 8.02% | 8.23% | 3.44% | 7.30% | 13.25% | 15.16% | 10.41% | 10.24% | 8.07% | 9.17% | 13.28% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $765,000K ÷ $4,037,000K
= 18.95%
Based on the ROE data provided for Howmet Aerospace Inc over the past eight quarters, there appears to be a positive trend in the company's return on equity. The ROE has been gradually increasing over this period, indicating that the company is effectively utilizing its equity to generate profits for its shareholders.
Starting from Q1 2022 at 8.88%, the ROE has shown consistent improvement, reaching 18.90% in Q4 2023. This suggests that the company's management is effectively deploying the shareholders' equity to generate earnings. A rising ROE is generally viewed positively by investors as it indicates that the company is becoming more efficient in generating profits relative to its equity base.
The upward trend in ROE signals that Howmet Aerospace Inc is becoming more profitable and efficient in its operations, which could attract investors seeking strong returns on their equity investments. However, it is important to consider other financial metrics and factors alongside ROE to gain a comprehensive understanding of the company's overall financial performance and future prospects.
Peer comparison
Dec 31, 2023