Cracker Barrel Old Country Store (CBRL)

Return on equity (ROE)

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Net income	US$ in thousands	40,930	99,050	131,880	254,513	-32,475
Total stockholders’ equity	US$ in thousands	440,149	483,825	511,479	663,633	418,389
ROE		9.30%	20.47%	25.78%	38.35%	-7.76%

August 2, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $40,930K ÷ $440,149K
= 9.30%

Cracker Barrel Old Country Store's return on equity (ROE) has displayed fluctuations over the past five years. In the most recent fiscal year ending on August 2, 2024, the ROE was 9.30%, representing a decrease from the previous year's 20.47%. This decline indicates a reduction in the company's ability to generate profit from shareholders' equity.

Comparing the ROE for the last fiscal year to earlier years, the trend indicates a downward trajectory. The ROE was notably higher at 38.35% in the fiscal year ending July 30, 2021, and declined to -7.76% the following year, showing a significant swing into negative territory. This negative ROE in 2020 could suggest that the company experienced a loss during that period or had financial difficulties impacting its profitability.

The decreasing trend in ROE from 2021 to 2024 may raise concerns about the company's efficiency in utilizing its equity to generate profits for shareholders. Investors and stakeholders may wish to further investigate the reasons behind this decline in ROE and assess the company's overall financial health and performance.