Catalent Inc (CTLT)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	-1,043,000	-256,000	499,000	585,000	221,000
Total stockholders’ equity	US$ in thousands	3,604,000	4,611,000	4,775,000	3,915,000	2,899,000
ROE		-28.94%	-5.55%	10.45%	14.94%	7.62%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-1,043,000K ÷ $3,604,000K
= -28.94%

Catalent Inc's return on equity (ROE) has shown significant fluctuations over the past five years. In the most recent fiscal year ended June 30, 2024, the company experienced a negative ROE of -28.94%, indicating that its net income was insufficient to generate a positive return for shareholders in relation to their equity investment.

This sharp decline from the previous year's ROE of -5.55% suggests a deteriorating financial performance and operational efficiency. It is essential for investors to investigate the reasons behind this negative trend, such as declining profitability, high debt levels, or other factors impacting shareholder returns.

In contrast, Catalent Inc achieved a comparatively strong ROE of 10.45% in fiscal year 2022, indicating improved profitability and effective utilization of shareholder funds to generate returns. The subsequent increase to 14.94% in fiscal year 2021 highlights a period of sustained growth and value creation for investors.

Notably, the ROE of 7.62% in fiscal year 2020 reflects a moderate performance, signaling the company's ability to generate a positive return on equity but with room for improvement.

Overall, Catalent Inc's ROE trend indicates fluctuations in its profitability and efficiency in utilizing shareholder equity. Investors may need to closely monitor the company's financial health, operational strategies, and industry dynamics to assess its long-term sustainability and potential for generating returns.