Commercial Metals Company (CMC)

Return on equity (ROE)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Net income	US$ in thousands	859,760	1,217,260	412,865	279,503	198,093
Total stockholders’ equity	US$ in thousands	4,120,870	3,286,200	2,294,880	1,889,200	1,623,860
ROE		20.86%	37.04%	17.99%	14.79%	12.20%

August 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $859,760K ÷ $4,120,870K
= 20.86%

To analyze Commercial Metals Co.'s return on equity (ROE) over the past five years, we can observe a fluctuating trend in ROE. In August 2023, the ROE decreased to 20.86% from the previous year's 37.04%. Despite this decrease, the company's ROE remained relatively strong compared to the 2019 and 2020 figures of 12.20% and 14.79% respectively. The significant increase in ROE from 2020 to 2022 indicates improved profitability and efficiency in generating returns from shareholders' equity. However, the recent decline may warrant further investigation into the factors impacting the company's performance. Overall, Commercial Metals Co.'s ROE demonstrates variability over the past five years, reflecting changes in the company's profitability and efficiency in utilizing its shareholders' equity.