Albertsons Companies (ACI)
Return on equity (ROE)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 958,600 | 1,296,000 | 1,513,500 | 1,619,600 | 850,200 |
| Total stockholders’ equity | US$ in thousands | 3,385,900 | 2,747,500 | 1,610,700 | 3,024,600 | 1,324,300 |
| ROE | 28.31% | 47.17% | 93.97% | 53.55% | 64.20% |
February 28, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $958,600K ÷ $3,385,900K
= 28.31%
The analysis of Albertsons Companies' return on equity (ROE) over the specified period reveals significant fluctuations that reflect underlying changes in profitability, asset utilization, and equity management.
In the fiscal year ending February 28, 2021, the ROE stood at 64.20%, indicating a highly efficient use of shareholder equity in generating net income. This elevated level suggests strong profitability relative to shareholders’ equity during that period. The subsequent year, ending February 28, 2022, experienced a decline to 53.55%, marking a reduction of approximately 10.65 percentage points. While still substantial, this decrease indicates a moderation in the company’s ability to generate profit from its equity base, potentially due to operational or market factors.
The year ending February 28, 2023, witnessed a pronounced increase to 93.97%, nearly doubling the prior year's figure. This substantial rise suggests a period of exceptional profitability or efficiency gains, or enhancements in asset management that significantly amplified returns on shareholder equity. Such a peak typically results from factors like improved margins, strategic initiatives, or favorable market conditions.
However, the subsequent fiscal year ending February 29, 2024, saw a sharp decline to 47.17%. This decline of approximately 46.80 percentage points indicates a substantial reduction in ROE, which could be attributable to decreased net income, increased equity base without proportional earnings growth, or operational challenges. The decrease reflects potential headwinds such as rising costs, competitive pressures, or strategic shifts affecting profit generation.
Looking further ahead, the forecast for the fiscal year ending February 28, 2025, projects a continued downward trend to 28.31%. This level signifies a significant reduction in ROE, which, when compared to historical figures, suggests ongoing challenges in sustaining previous profit margins or efficiencies. It may also point to increased investment endeavors, changes in capital structure, or external macroeconomic factors impacting performance.
Overall, the historical ROE data indicates that Albertsons Companies has experienced considerable variability in its ability to generate returns on shareholders' equity. The periods of high ROE reflect times of strong profitability and operational efficiency, while the recent downward trend suggests a shift towards more subdued profitability levels, possibly related to competitive, operational, or macroeconomic influences.
Peer comparison
Feb 28, 2025