Albertsons Companies (ACI)
Return on equity (ROE)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 958,600 | 1,037,300 | 998,100 | 1,119,500 | 1,296,000 | 1,356,600 | 1,370,700 | 1,446,500 | 1,513,500 | 1,657,500 | 1,706,500 | 1,659,000 | 1,619,600 | 1,020,300 | 719,500 | 708,800 | 850,200 | 1,062,200 | 993,300 | 1,003,600 |
| Total stockholders’ equity | US$ in thousands | 3,385,900 | 3,365,700 | 3,020,300 | 2,913,100 | 2,747,500 | 2,527,300 | 2,216,600 | 2,000,000 | 1,656,400 | 819,000 | 4,387,000 | 4,070,600 | 3,024,600 | 2,310,700 | 1,959,900 | 1,698,400 | 1,324,300 | 1,374,700 | 1,501,600 | 1,194,900 |
| ROE | 28.31% | 30.82% | 33.05% | 38.43% | 47.17% | 53.68% | 61.84% | 72.32% | 91.37% | 202.38% | 38.90% | 40.76% | 53.55% | 44.16% | 36.71% | 41.73% | 64.20% | 77.27% | 66.15% | 83.99% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $958,600K ÷ $3,385,900K
= 28.31%
The analysis of Albertsons Companies’ return on equity (ROE) over the period from May 2020 to February 2025 reveals significant variability and notable fluctuations in profitability relative to shareholders’ equity.
Initially, the ROE exhibited a high level of responsiveness, with exceptionally elevated figures observed in 2020, reaching a peak of approximately 83.99% in May 2020. This substantial figure indicates that, during this period, the company was highly efficient in generating net income from shareholders’ equity, likely reflecting favorable operational conditions, exceptional profitability, or one-time gains.
Subsequently, the ROE experienced a declining trend, dropping to 66.15% by August 2020 and further to 77.27% in November 2020. Throughout the 2020 academic year, the ratios fluctuated but remained elevated by historical standards. The apparent decline may be attributable to increased equity base, changes in net earnings, or shifts in operational strategy.
During 2021, the ROE continued to decrease, reaching lows of approximately 41.73% in May 2021 and 36.71% in August 2021. Although recovery was observed thereafter, with the ROE edging up to 44.16% in November 2021 and 53.55% by February 2022, the figures remained below the pandemic-era peaks, reflecting possible normalization of earnings and equity structures or sector-wide influences.
A notable anomaly appears in November 2022, when the ROE sharply escalated to approximately 202.38%, indicating an extraordinary surge in net income relative to equity. Such an outlier suggests exceptional financial performance or one-off accounting factors that significantly boosted profitability metrics.
Following this anomaly, the ROE remained relatively high but trended downward, registering 91.37% in February 2023 and then decreasing to 72.32% in May 2023, 61.84% in August 2023, and further to 53.68% in November 2023. The decline indicates a reduction in profitability or changes in the equity base, although the ratios continued to stay above pre-pandemic average levels for some time.
Moving into 2024, the ROE displayed a downward trajectory, averaging around 30-40% throughout the year, with figures such as 47.17% in February, 38.43% in May, and 33.05% in August, finally falling to approximately 28.31% by February 2025. This sustained decrease suggests a potential normalization of earnings, increased equity levels, or a combination of both, leading to a more stable and less volatile profitability ratio.
Overall, the period under review demonstrates significant volatility in Albertsons’ ROE, characterized by initial high ratios during the early pandemic period, a dramatic peak at the end of 2022, and a subsequent gradual decline into more sustainable, lower levels by early 2025. These fluctuations reflect dynamic changes in operational performance, competitive pressures, strategic adjustments, and perhaps macroeconomic factors influencing profit generation relative to shareholders’ equity.
Peer comparison
Feb 28, 2025