Cracker Barrel Old Country Store (CBRL)

Return on equity (ROE)

		Aug 2, 2024	Apr 26, 2024	Jan 26, 2024	Oct 27, 2023	Jul 28, 2023	Apr 28, 2023	Jan 27, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019
Net income (ttm)	US$ in thousands	40,930	60,253	83,420	87,377	99,050	94,952	108,500	115,633	131,880	134,879	140,833	117,209	254,513	243,216	47,814	94,982	-32,475	7,484	219,830	219,417
Total stockholders’ equity	US$ in thousands	440,149	426,557	461,967	460,252	483,825	473,868	486,493	487,513	511,479	564,229	604,104	629,215	663,633	648,113	608,611	591,612	418,389	392,209	629,930	605,784
ROE		9.30%	14.13%	18.06%	18.98%	20.47%	20.04%	22.30%	23.72%	25.78%	23.91%	23.31%	18.63%	38.35%	37.53%	7.86%	16.05%	-7.76%	1.91%	34.90%	36.22%

August 2, 2024 calculation

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

Cracker Barrel Old Country Store's return on equity (ROE) has shown fluctuation over the past few quarters. The ROE has been relatively strong with double-digit figures, ranging from -7.76% (an anomaly) to a high of 38.35% in the recent quarters. The average ROE over the period is around 20%, indicating that the company is effectively utilizing its equity to generate profits for shareholders.

The increase in ROE over time suggests that Cracker Barrel Old Country Store has been improving its efficiency in generating profits from the shareholders' equity. However, the dip in ROE in certain quarters, such as in January 2021 and July 2020, warrants further investigation to understand the reasons behind the decrease in profitability.

Overall, the positive trend in ROE reflects positively on the company's ability to generate returns for its shareholders. Investors and analysts should continue to monitor the ROE trend to assess the company's financial performance and management's effectiveness in utilizing equity to drive profitability.