Carpenter Technology Corporation (CRS)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	186,500	56,400	-49,100	-229,600	1,500
Total stockholders’ equity	US$ in thousands	1,628,800	1,396,100	1,330,500	1,392,300	1,445,700
ROE		11.45%	4.04%	-3.69%	-16.49%	0.10%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $186,500K ÷ $1,628,800K
= 11.45%

Carpenter Technology Corporation's return on equity (ROE) has shown a fluctuating trend over the past five years. The ROE has improved significantly from -16.49% in 2021 to 11.45% in 2024, indicating that the company is generating stronger returns on shareholders' equity in recent years. This improvement suggests that Carpenter Technology Corporation has become more efficient in utilizing its equity to generate profits.

The positive ROE in 2024 is a positive sign, indicating that the company is effectively utilizing its equity to generate returns for shareholders. The consistent improvement in ROE over the years reflects positively on the company's financial performance and management's ability to enhance shareholder value. However, it is important to note that Carpenter Technology Corporation experienced negative ROE figures in 2020 and 2022, indicating periods of underperformance and inefficiency in utilizing equity to generate profits.

Overall, the recent improvement in Carpenter Technology Corporation's ROE suggests a positive trajectory for the company's financial performance and may indicate potential value creation for shareholders in the future. Continued monitoring of ROE trends will be essential to assess the company's ongoing financial health and performance.