Cavco Industries Inc (CVCO)
Return on equity (ROE)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 157,817 | 240,554 | 197,699 | 76,646 | 75,066 |
| Total stockholders’ equity | US$ in thousands | 1,033,410 | 976,286 | 830,455 | 683,640 | 607,586 |
| ROE | 15.27% | 24.64% | 23.81% | 11.21% | 12.35% |
March 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $157,817K ÷ $1,033,410K
= 15.27%
Cavco Industries Inc's return on equity (ROE) has fluctuated over the past five years. For the fiscal year ending March 31, 2024, the ROE stands at 15.27%, marking a decrease from the previous year's 24.64%. Despite this decline, the ROE remains relatively healthy, indicating that the company is generating a profit relative to its shareholder equity.
Looking back over the five-year period, there is a noticeable improvement in ROE from 2020 to 2023, showcasing the company's ability to efficiently utilize shareholder equity to generate returns. The dip in ROE for 2021 can be seen as a temporary setback, which was followed by a rebound in the subsequent year.
In assessing Cavco Industries Inc's ROE, further analysis should be undertaken to understand the factors driving the changes in profitability and equity utilization over the years. Additional qualitative and quantitative metrics should be considered to provide a more comprehensive evaluation of the company's financial performance and strategic direction.