BJs Wholesale Club Holdings Inc (BJ)

Return on equity (ROE)

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Net income (ttm) US$ in thousands 534,417 557,627 547,751 533,230 552,678 538,131 523,584 509,194 494,804 493,260 491,716 505,581 519,446 530,672 541,898 524,406 502,032 468,593 454,103 468,170
Total stockholders’ equity US$ in thousands 1,847,450 1,762,170 1,654,910 1,527,420 1,458,850 1,458,850 1,353,700 1,353,700 1,231,290 1,231,290 1,131,730 1,131,730 1,046,840 1,046,840 942,875 942,875 853,591 853,591 721,342 648,108
ROE 28.93% 31.64% 33.10% 34.91% 37.88% 36.89% 38.68% 37.61% 40.19% 40.06% 43.45% 44.67% 49.62% 50.69% 57.47% 55.62% 58.81% 54.90% 62.95% 72.24%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $534,417K ÷ $1,847,450K
= 28.93%

The return on equity (ROE) of BJ's Wholesale Club Holdings Inc has shown a consistent downward trend over the past few years, indicating a declining profitability relative to shareholders' equity. From January 31, 2022, where the ROE stood at 72.24%, to January 31, 2025, where the ROE dropped to 28.93%, there has been a gradual decrease in ROE. This decline suggests that the company may be experiencing challenges in generating profits from the equity invested by shareholders.

The decreasing ROE could be attributed to various factors, such as declining net income, inefficient management of assets, or increased shareholders' equity without a proportional increase in earnings. Investors and analysts may be concerned about this trend as it indicates a diminishing ability of the company to generate returns for its shareholders.

It is important for stakeholders to closely monitor the company's financial performance and investigate the underlying reasons for the declining ROE. By identifying and addressing the factors contributing to the decrease in ROE, BJ's Wholesale Club Holdings Inc can work towards improving its profitability and enhancing shareholder value in the future.