American Woodmark Corporation (AMWD)
Return on equity (ROE)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 99,456 | 100,688 | 105,344 | 107,999 | 116,216 | 119,559 | 113,060 | 111,503 | 93,723 | 78,106 | 14,121 | -12,633 | -29,722 | -41,419 | 25,033 | 45,259 | 58,763 | 68,949 | 64,558 | 64,465 |
| Total stockholders’ equity | US$ in thousands | 915,998 | 919,564 | 915,062 | 913,839 | 910,376 | 896,910 | 895,580 | 894,365 | 873,788 | 843,140 | 829,179 | 792,538 | 772,883 | 750,953 | 743,139 | 737,101 | 742,896 | 763,391 | 745,194 | 721,520 |
| ROE | 10.86% | 10.95% | 11.51% | 11.82% | 12.77% | 13.33% | 12.62% | 12.47% | 10.73% | 9.26% | 1.70% | -1.59% | -3.85% | -5.52% | 3.37% | 6.14% | 7.91% | 9.03% | 8.66% | 8.93% |
April 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $99,456K ÷ $915,998K
= 10.86%
The analysis of American Woodmark Corporation's return on equity (ROE) over the specified period reflects notable fluctuations with an overall trend toward stabilization in recent periods. Initially, the ROE experienced a gradual decline from 8.93% as of July 31, 2020, to a low of 3.37% recorded on October 31, 2021. This downward trajectory was particularly pronounced during the latter part of 2021 and early 2022, with the ROE turning negative in January 2022 at -5.52% and remaining negative through April 2022 and July 2022, indicating periods where the company's net income was insufficient to generate positive returns relative to shareholder equity.
Subsequently, a recovery commenced, with the ROE turning positive again at 1.70% as of October 31, 2022. This upward movement gained momentum, reaching 9.26% in January 2023 and continuing upward through April and July 2023, with ROE figures of 10.73% and 12.47%, respectively. The positive trend persisted into October 2023, with a slight increase to 12.62%. The most recent data points, as of January 2024 through April 2024 and July 2024, show the ROE maintaining above the double-digit threshold, ranging from 13.33% to approximately 11.82%. A slight decline is observed thereafter, with the ROE at 11.51% in October 2024 and approximately 10.95% to 10.86% in early 2025.
Overall, the company's ROE has demonstrated periods of stress characterized by negative returns but has shown resilience and improvement in recent periods, returning to and maintaining relatively high levels. The resurgence in ROE in 2023 and 2024 suggests a stabilization and potential improvement in profitability and efficient utilization of shareholders' equity. However, the historical volatility underscores the importance of examining underlying operational, market, and strategic factors influencing these movements.