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Aston Martin Lagonda Global Holdings (LSE:AML) ROE % : -61.58% (As of Mar. 2024)


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What is Aston Martin Lagonda Global Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aston Martin Lagonda Global Holdings's annualized net income for the quarter that ended in Mar. 2024 was £-555.6 Mil. Aston Martin Lagonda Global Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was £902.3 Mil. Therefore, Aston Martin Lagonda Global Holdings's annualized ROE % for the quarter that ended in Mar. 2024 was -61.58%.

The historical rank and industry rank for Aston Martin Lagonda Global Holdings's ROE % or its related term are showing as below:

LSE:AML' s ROE % Range Over the Past 10 Years
Min: -99.63   Med: -34.33   Max: 81.94
Current: -27.77

During the past 9 years, Aston Martin Lagonda Global Holdings's highest ROE % was 81.94%. The lowest was -99.63%. And the median was -34.33%.

LSE:AML's ROE % is ranked worse than
92.93% of 1258 companies
in the Vehicles & Parts industry
Industry Median: 7.345 vs LSE:AML: -27.77

Aston Martin Lagonda Global Holdings ROE % Historical Data

The historical data trend for Aston Martin Lagonda Global Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Aston Martin Lagonda Global Holdings ROE % Chart

Aston Martin Lagonda Global Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only -34.33 -76.01 -27.76 -81.52 -28.40

Aston Martin Lagonda Global Holdings Quarterly Data
Jun18 Sep18 Dec18 Jun19 Sep19 Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.77 -42.71 -39.74 - -61.58

Competitive Comparison of Aston Martin Lagonda Global Holdings's ROE %

For the Auto Manufacturers subindustry, Aston Martin Lagonda Global Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aston Martin Lagonda Global Holdings's ROE % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Aston Martin Lagonda Global Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Aston Martin Lagonda Global Holdings's ROE % falls into.



Aston Martin Lagonda Global Holdings ROE % Calculation

Aston Martin Lagonda Global Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-228.1/( (704+902.3)/ 2 )
=-228.1/803.15
=-28.40 %

Aston Martin Lagonda Global Holdings's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-555.6/( (902.3+0)/ 1 )
=-555.6/902.3
=-61.58 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Aston Martin Lagonda Global Holdings  (LSE:AML) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-555.6/902.3
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-555.6 / 1070.8)*(1070.8 / 3173)*(3173 / 902.3)
=Net Margin %*Asset Turnover*Equity Multiplier
=-51.89 %*0.3375*3.5166
=ROA %*Equity Multiplier
=-17.51 %*3.5166
=-61.58 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-555.6/902.3
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-555.6 / -555.2) * (-555.2 / -228.4) * (-228.4 / 1070.8) * (1070.8 / 3173) * (3173 / 902.3)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0007 * 2.4308 * -21.33 % * 0.3375 * 3.5166
=-61.58 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Aston Martin Lagonda Global Holdings ROE % Related Terms

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Aston Martin Lagonda Global Holdings (LSE:AML) Business Description

Traded in Other Exchanges
Address
Banbury Road, Gaydon, Warwick, GBR, CV35 0DB
Aston Martin Lagonda Global Holdings PLC is a luxury automotive manufacturer. It designs, engineers and produces sports cars in Warwickshire, United Kingdom and sell those models through a network of dealers. It is also involved in servicing of sports cars, all the activities are carried out under the brand name of Aston Martin. The Group has only one operating segment, the automotive segment. The automotive segment includes all activities relating to design, development, manufacture and marketing of vehicles including consulting services; as well as the sale of parts, servicing and automotive brand activities. Geographically, it has a presence in the United Kingdom, The Americas, Rest of Europe, Middle East and Africa and the Asia Pacific of which The Americas derives maximum revenue.

Aston Martin Lagonda Global Holdings (LSE:AML) Headlines

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