BJs Wholesale Club Holdings Inc (BJ)

Return on equity (ROE)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Net income (ttm)	US$ in thousands	523,741	507,650	507,125	516,807	513,180	490,967	487,542	457,523	426,652	414,966	411,245	406,875	421,030	366,911	299,207	247,112	187,176	209,720	209,059	148,922
Total stockholders’ equity	US$ in thousands	1,458,850	1,353,700	1,231,290	1,131,730	1,046,840	942,875	853,591	721,342	648,108	567,736	488,352	413,524	319,327	217,378	119,101	32,497	-54,344	-104,486	-164,586	-148,309
ROE		35.90%	37.50%	41.19%	45.67%	49.02%	52.07%	57.12%	63.43%	65.83%	73.09%	84.21%	98.39%	131.85%	168.79%	251.22%	760.41%	—	—	—	—

February 3, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $523,741K ÷ $1,458,850K
= 35.90%

The return on equity (ROE) of BJs Wholesale Club Holdings Inc has shown a consistent upward trend over the periods analyzed. The ROE ranged from 35.90% to 760.41%, with significant increases observed in recent periods.

The company's ROE was relatively stable at lower levels in the earlier periods, but started to rise notably from approximately 63.43% in April 2022 onwards. The most recent ROE of 760.41% as of February 2020 indicates a substantial return generated on shareholders' equity.

The increasing trend in ROE signifies that BJs Wholesale Club Holdings Inc is effectively utilizing its equity to generate higher profits for its shareholders. This could be attributed to improved operational efficiency, effective cost management, favorable market conditions, or strategic investments leading to higher earnings.

It is important to note that such a sharp increase in ROE, especially to 760.41%, should be further investigated to understand the underlying reasons and ensure the sustainability of the company's performance. Additional analysis of the company's financial statements, business operations, and industry trends would provide a more comprehensive understanding of the factors driving the ROE growth.