Commercial Metals Company (CMC)
Return on equity (ROE)
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 198,093 | 163,542 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,623,860 | 1,564,000 |
| ROE | 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% | 12.20% | 10.46% |
February 29, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $680,257K ÷ $4,222,450K
= 16.11%
The return on equity (ROE) of Commercial Metals Company has shown fluctuations over the past few quarters. The ROE for the most recent period ending February 29, 2024, was 16.11%, indicating the company generated $0.161 in profit for every dollar of shareholder equity.
Looking at the trend, the ROE has been declining since reaching a peak of 37.04% in August 2022. This decline could suggest a decrease in the company's efficiency in generating profits from shareholders' equity. However, the ROE remains at a reasonable level, reflecting the company's ability to generate returns for shareholders.
It is important to note that a high ROE can signify that the company is effectively utilizing shareholder funds to generate profits, while a declining ROE could indicate potential challenges in maintaining or improving profitability levels. Further analysis of the components contributing to ROE, such as profit margin, asset turnover, and financial leverage, would provide a more in-depth understanding of the company's financial performance.
Peer comparison
Feb 29, 2024