Cal-Maine Foods Inc (CALM)
Return on equity (ROE)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,220,048 | 990,814 | 595,522 | 523,170 | 519,906 | 423,674 | 327,442 | 181,656 | 35,870 | 129,792 | 223,714 | 546,007 | 868,300 | 955,956 | 1,043,612 | 845,680 | 647,748 | 559,147 | 470,546 | 384,776 |
| Total stockholders’ equity | US$ in thousands | 2,560,620 | 2,381,770 | 2,045,370 | 1,902,550 | 1,800,150 | 1,800,150 | 1,723,750 | 1,723,750 | 1,626,410 | 1,626,410 | 1,613,340 | 1,613,340 | 1,611,080 | 1,611,080 | 1,535,990 | 1,535,990 | 1,320,960 | 1,320,960 | 1,188,320 | 1,188,320 |
| ROE | 47.65% | 41.60% | 29.12% | 27.50% | 28.88% | 23.54% | 19.00% | 10.54% | 2.21% | 7.98% | 13.87% | 33.84% | 53.90% | 59.34% | 67.94% | 55.06% | 49.04% | 42.33% | 39.60% | 32.38% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,220,048K ÷ $2,560,620K
= 47.65%
The analysis of Cal-Maine Foods Inc's return on equity (ROE) over the period from August 2022 through May 2025 reveals notable fluctuations indicative of varying operational performance and external influences.
Initially, as of August 27, 2022, the ROE stood at 32.38%, reflecting a healthy profitability relative to shareholders' equity. This figure experienced a substantial increase by November 2022, reaching a peak of approximately 49.04% on November 30, 2022, suggesting improved profitability or efficient utilization of equity during this period.
Subsequently, the ROE continued to trend upward, reaching a high of approximately 67.94% on February 28, 2023. This significant elevation indicates a period of strong financial performance, likely driven by favorable market conditions, cost efficiencies, or revenue growth.
However, from March 2023 onwards, the ROE demonstrated a declining pattern. By September 2, 2023, it had decreased sharply to 13.87%, pointing to potential challenges such as increased costs, competitive pressures, or market volatility impacting profitability.
The decline persisted into late 2023 and early 2024, with the ROE falling to as low as 2.21% on December 2, 2023. This substantial reduction could be attributed to external factors such as market downturns or internal issues like operational setbacks.
Beginning in early 2024, a recovery trend is observed. The ROE increased to 10.54% in February 2024, then to 19.00% in March 2024, followed by a notable rise to 23.54% in May 2024. This upward movement suggests an improvement in operational efficiency or favorable market conditions contributing to enhanced profitability.
The upward momentum continued with the ROE reaching 28.88% in June 2024, and further climbing to 41.60% by February 2025. The indicator of stronger profitability and effective management likely underpins this growth trajectory.
By the end of the observed period, in May 2025, the ROE reached 47.65%, reflecting a robust return relative to shareholders' equity and indicating a period of strong financial performance.
Overall, the ROE pattern indicates periods of high profitability interspersed with significant declines, highlighting the company's sensitivity to market cycles and operational factors. The recent upward trend suggests a recovery phase, potentially driven by strategic initiatives or favorable market conditions. Continuous monitoring of external influences and internal performance metrics will be essential to understanding future ROE dynamics for Cal-Maine Foods Inc.