Acuity Brands Inc (AYI)
Return on equity (ROE)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 346,000 | 384,000 | 306,300 | 248,300 | 330,400 |
| Total stockholders’ equity | US$ in thousands | 2,015,400 | 1,911,800 | 2,044,500 | 2,127,500 | 1,918,900 |
| ROE | 17.17% | 20.09% | 14.98% | 11.67% | 17.22% |
August 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $346,000K ÷ $2,015,400K
= 17.17%
Acuity Brands, Inc.'s return on equity (ROE) has fluctuated over the past five years, as indicated by the data in the table. The ROE for the most recent period, ending August 31, 2023, is 17.17%, showing a slight decrease from the previous year's 20.09%.
The ROE in 2021 was 14.98%, marking an improvement from 11.67% in 2020. Moreover, the ROE was relatively high in 2019 at 17.22%. The variation in ROE over the years suggests changes in the company's profitability and efficiency in generating returns for its shareholders.
ROE is a measure of a company's profitability and efficiency in using its shareholders' equity to generate earnings. The trend in Acuity Brands' ROE indicates that the company has been able to consistently generate positive returns for its shareholders. However, the slight decrease in 2023 compared to 2022 may warrant further investigation into the factors affecting the company's profitability and efficiency.
It's important to note that analyzing ROE in isolation may not provide a complete understanding of a company's financial performance. Therefore, further analysis of the company's financial statements and other key financial ratios would be necessary to gain a comprehensive insight into the company's overall financial health.
Peer comparison
Aug 31, 2023