Commercial Metals Company (CMC)

Return on equity (ROE)

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Net income (ttm)	US$ in thousands	485,491	565,726	680,257	774,259	859,760	964,224	1,042,682	1,246,147	1,217,262	1,080,945	898,924	581,967	413,171	328,481	262,807	260,248	279,503	297,991	311,647	261,699
Total stockholders’ equity	US$ in thousands	4,299,780	4,258,810	4,222,450	4,229,740	4,120,870	4,023,380	3,782,960	3,584,000	3,286,200	3,141,940	2,869,720	2,485,960	2,294,880	2,156,370	2,009,260	1,934,690	1,889,200	1,800,450	1,757,840	1,701,500
ROE		11.29%	13.28%	16.11%	18.31%	20.86%	23.97%	27.56%	34.77%	37.04%	34.40%	31.32%	23.41%	18.00%	15.23%	13.08%	13.45%	14.79%	16.55%	17.73%	15.38%

August 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $485,491K ÷ $4,299,780K
= 11.29%

Commercial Metals Company has experienced fluctuations in its return on equity (ROE) over the past two years. The ROE has generally trended downward, with a peak of 37.04% in August 2024 and a low of 11.29% in November 2020. The company's ROE has shown some variability, indicating changes in profitability and efficiency in generating profits from shareholders' equity.

The average ROE over the period is 20.01%, suggesting that the company has been able to generate a healthy return for its shareholders on average. However, the declining trend in ROE in recent periods may raise concerns about the company's ability to maintain or improve its profitability in the future.

It is important for investors and stakeholders to monitor the company's financial performance and assess the factors contributing to the changes in ROE to make informed decisions about the company's financial health and prospects.