CorVel Corp (CRVL)
Return on equity (ROE)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 76,252 | 66,365 | 66,410 | 46,356 | 47,377 |
| Total stockholders’ equity | US$ in thousands | 247,647 | 202,176 | 212,395 | 220,402 | 189,711 |
| ROE | 30.79% | 32.83% | 31.27% | 21.03% | 24.97% |
March 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $76,252K ÷ $247,647K
= 30.79%
CorVel Corp has shown a relatively stable and strong return on equity (ROE) over the past five years. The ROE has ranged from 24.97% to 32.83%, with the most recent ROE at 30.79% as of March 31, 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits.
The consistent high ROE suggests that CorVel Corp is efficiently generating profits relative to its equity base. This could be due to effective cost management, higher asset turnover, or a combination of both. The upward trend in ROE over the years also reflects the company's ability to improve its profitability and operational efficiency.
Overall, the strong and stable ROE of CorVel Corp indicates that the company is effectively leveraging its equity to generate returns for its shareholders.