Cal-Maine Foods Inc (CALM)
Return on equity (ROE)
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 277,888 | 758,024 | 132,650 | 2,060 | 18,391 |
| Total stockholders’ equity | US$ in thousands | 1,800,150 | 1,611,080 | 1,104,550 | 1,012,780 | 1,009,680 |
| ROE | 15.44% | 47.05% | 12.01% | 0.20% | 1.82% |
June 1, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $277,888K ÷ $1,800,150K
= 15.44%
The Return on Equity (ROE) of Cal-Maine Foods Inc has fluctuated significantly over the past five years. In the most recent fiscal year ending June 1, 2024, the ROE stood at 15.44%, showing a decrease from the previous year's ROE of 47.05% ending on June 3, 2023. This significant drop suggests a decline in the company's efficiency in generating profit from shareholders' equity.
Comparing the ROE of 15.44% to the earlier years, it is still higher than the ROE of 12.01% and 1.82% in fiscal years ending May 28, 2022, and May 30, 2020, respectively. However, it remains substantially lower than the ROE of 47.05% in the fiscal year ending May 29, 2021, indicating a potential dip in the company's profitability performance.
The fluctuation in ROE could be attributed to various factors such as changes in the company's profitability, financial leverage, asset turnover, or equity multiplier. Investors and stakeholders may scrutinize such variations in ROE to assess the company's ability to generate returns on the shareholders' equity effectively and sustainably. Further analysis of the company's financial statements and performance indicators would be necessary to understand the underlying reasons for these fluctuations in ROE over the years.