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AECOM (ACM) ROE %

: 16.94% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AECOM's annualized net income for the quarter that ended in Dec. 2023 was $378 Mil. AECOM's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,230 Mil. Therefore, AECOM's annualized ROE % for the quarter that ended in Dec. 2023 was 16.94%.

The historical rank and industry rank for AECOM's ROE % or its related term are showing as below:

ACM' s ROE % Range Over the Past 10 Years
Min: -6.71   Med: 3.11   Max: 11.97
Current: 2.56

During the past 13 years, AECOM's highest ROE % was 11.97%. The lowest was -6.71%. And the median was 3.11%.

ACM's ROE % is ranked worse than
67.14% of 1622 companies
in the Construction industry
Industry Median: 6.76 vs ACM: 2.56

AECOM ROE % Historical Data

The historical data trend for AECOM'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.

AECOM Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.71 -5.34 5.77 11.97 2.36

AECOM Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 13.98 11.90 -21.34 4.37 16.94

Competitive Comparison

For the Engineering & Construction subindustry, AECOM'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.


AECOM ROE % Distribution

For the Construction industry and Industrials sector, AECOM's ROE % distribution charts can be found below:

* The bar in red indicates where AECOM's ROE % falls into.



AECOM ROE % Calculation

AECOM's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=55.332/( (2476.654+2212.332)/ 2 )
=55.332/2344.493
=2.36 %

AECOM's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=377.752/( (2212.332+2247.296)/ 2 )
=377.752/2229.814
=16.94 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


AECOM  (NYSE:ACM) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=377.752/2229.814
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(377.752 / 15599.68)*(15599.68 / 11311.6595)*(11311.6595 / 2229.814)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.42 %*1.3791*5.0729
=ROA %*Equity Multiplier
=3.34 %*5.0729
=16.94 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=377.752/2229.814
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (377.752 / 546.156) * (546.156 / 832.984) * (832.984 / 15599.68) * (15599.68 / 11311.6595) * (11311.6595 / 2229.814)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6917 * 0.6557 * 5.34 % * 1.3791 * 5.0729
=16.94 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


AECOM ROE % Related Terms

Thank you for viewing the detailed overview of AECOM's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


AECOM (ACM) Business Description

Traded in Other Exchanges
Address
13355 Noel Road, Suite 400, Dallas, TX, USA, 75240
Aecom is one of the largest global providers of design, engineering, construction, and management services. It serves a broad spectrum of end markets including infrastructure, water, transportation, and energy. Based in Los Angeles, Aecom has a presence in over 150 countries and employs 51,000. The company generated $14.4 billion in sales and $847 million in adjusted operating income in fiscal 2023.
Executives
Troy Rudd officer: EVP, CFO C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90064
Lara Poloni officer: Chief Executive, EMIA C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Douglas Stotlar director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Daniel R. Tishman director, officer: Vice Chairman 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Todd Battley officer: Chief Strategy Officer C/O AECOM, 300 SOUTH GRAND AVENUE, 9TH FLOOR, LOS ANGELES CA 90071
Kristy Pipes director C/O PS BUSINESS PARKS, INC., 701 WESTERN AVENUE, GLENDALE CA 91201
Van 't Noordende Alexander M director C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Diane C Creel director 249 BAY SHORE AVENUE, N/A, LONG BEACH CA 90803
Lydia H Kennard director 155 N LAKE AVE, PASADENA CA 91101
Shirley A Adams officer: Chief Human Resources Officer C/O AECOM, 300 SOUTH GRAND AVENUE, 9TH FLOOR, LOS ANGELES CA 90071
Brad W Buss director 198 CHAMPION COURT, SAN JOSE CA 95134
Chuan-sheng Chiao officer: President, Asia Pacific C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
David Y. Gan officer: Chief Legal Officer C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
John C. Vollmer officer: Group President, MS C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Jacqueline C. Hinman director 9191 SOUTH JAMAICA STREET, ENGLEWOOD CO 80112