CorVel Corp (CRVL)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 95,165 | 76,252 | 66,365 | 66,410 | 46,356 |
| Total stockholders’ equity | US$ in thousands | 321,987,000 | 247,647 | 202,176 | 212,395 | 220,402 |
| ROE | 0.03% | 30.79% | 32.83% | 31.27% | 21.03% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $95,165K ÷ $321,987,000K
= 0.03%
Over the past five years, CorVel Corp has experienced fluctuations in its return on equity (ROE) from 21.03% in March 2021 to a peak of 32.83% in March 2023, before decreasing to 30.79% in March 2024, and notably dropping to 0.03% in March 2025.
The increase in ROE from 2021 to 2023 indicates that the company was generating more profit relative to its shareholders' equity during those years. However, the subsequent decline in 2024 and significant drop in 2025 suggest a downturn in the company's profitability relative to its equity base.
It is crucial for stakeholders to further investigate the reasons behind the sharp decrease in ROE in 2025 to understand the factors impacting CorVel Corp's profitability and financial performance. This trend may raise concerns about the company's ability to effectively utilize shareholders' equity to generate returns in the future.