Kaiser Aluminum Corporation (KALU)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 46,800 | 47,200 | -29,600 | -18,500 | 28,800 |
| Total stockholders’ equity | US$ in thousands | 668,000 | 652,200 | 631,200 | 692,500 | 732,400 |
| ROE | 7.01% | 7.24% | -4.69% | -2.67% | 3.93% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $46,800K ÷ $668,000K
= 7.01%
Kaiser Aluminum Corporation's return on equity (ROE) has been volatile over the past five years. In 2020, the ROE was at a modest 3.93%, indicating that the company was generating a positive return for its shareholders. However, the ROE took a negative turn in 2021 and 2022, with returns of -2.67% and -4.69% respectively, suggesting that the company was not effectively utilizing its shareholders' equity to generate profits.
The trend improved in 2023 and 2024, with ROE increasing to 7.24% and 7.01% respectively. This indicates a positive shift, with the company becoming more efficient in generating profits from the shareholders' equity.
Overall, the fluctuating nature of Kaiser Aluminum Corporation's ROE over the years suggests some inconsistencies in the company's ability to generate returns for its shareholders. It is essential for investors and stakeholders to closely monitor the company's financial performance and management strategies to ensure sustainable and positive returns on equity in the future.
Peer comparison
Dec 31, 2024