Cal-Maine Foods Inc (CALM)

Return on equity (ROE)

May 31, 2025 Jun 1, 2024 May 31, 2024 Jun 3, 2023 May 31, 2023
Net income US$ in thousands 1,220,050 277,888 277,888 758,024 758,024
Total stockholders’ equity US$ in thousands 2,560,620 1,800,150 1,800,150 1,611,080 1,611,080
ROE 47.65% 15.44% 15.44% 47.05% 47.05%

May 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,220,050K ÷ $2,560,620K
= 47.65%

The return on equity (ROE) for Cal-Maine Foods Inc. demonstrates considerable variation over the specified periods. As of May 31, 2023, and June 3, 2023, the ROE was consistently reported at 47.05%, indicating a strong profitability relative to shareholders' equity during that period. However, by May 31, 2024, the ROE declined significantly to 15.44%, suggesting a substantial decrease in profitability or an increase in equity base relative to net income during that period. This decline could be attributed to factors such as increased operational costs, lower net income, or other financial dynamics impacting net earnings. Notably, by May 31, 2025, the ROE rebounded markedly to 47.65%, slightly surpassing the levels observed in mid-2023. This rebound indicates a restoration of profitability efficiency, aligning the company's return on equity closely with previous high-performance levels. Overall, the pattern suggests periods of volatility in profitability metrics, with a notable dip in 2024 followed by a strong recovery in the subsequent year.