Carpenter Technology Corporation (CRS)

Return on equity (ROE)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	376,000	186,500	56,400	-49,100	-229,600
Total stockholders’ equity	US$ in thousands	1,887,000	1,628,800	1,396,100	1,330,500	1,392,300
ROE		19.93%	11.45%	4.04%	-3.69%	-16.49%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $376,000K ÷ $1,887,000K
= 19.93%

The analysis of Carpenter Technology Corporation's return on equity (ROE) over the period from June 30, 2021, to June 30, 2025, indicates a noteworthy trajectory of improvement.

In June 2021, the company reported a negative ROE of -16.49%, reflecting substantial challenges in generating profitability relative to shareholders' equity, possibly due to operational difficulties, industry headwinds, or temporary disruptions. By June 30, 2022, the ROE had markedly improved to -3.69%, signaling a reduction in losses and a positive shift towards profitability, although still remaining below zero.

The subsequent year, June 30, 2023, marked a pivotal point with the ROE turning positive at 4.04%. This transition from negative to positive profitability suggests that the company implemented effective operational strategies, streamlined cost structures, or benefited from improved market conditions. Continuing this upward trend, the ROE advanced significantly to 11.45% in June 2024, indicating robust profitability and increased efficiency in generating returns for shareholders.

By June 30, 2025, the ROE reached 19.93%, nearly doubling from the prior year. Such a level demonstrates that Carpenter Technology Corporation not only overcame previous challenges but now exhibits strong, sustainable profitability that substantially benefits shareholders. This growth trajectory reflects a strengthening financial position, likely driven by successful execution of strategic initiatives, product developments, market expansions, or operational efficiencies.

Overall, the company's ROE progression from negative figures to approaching 20% within four years indicates a substantial turnaround, moving from losses toward strong profitability. This trend suggests improving operational performance, more effective capital utilization, and increased value creation for shareholders over the analyzed period.