Digi International Inc (DGII)

Return on equity (ROE)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	22,505	24,770	19,383	10,366	8,411
Total stockholders’ equity	US$ in thousands	581,035	540,488	501,513	472,517	371,500
ROE		3.87%	4.58%	3.86%	2.19%	2.26%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $22,505K ÷ $581,035K
= 3.87%

Digi International Inc's return on equity (ROE) has shown a fluctuating trend over the five-year period from September 30, 2020, to September 30, 2024. The ROE increased from 2.26% in 2020 to 4.58% in 2023, indicating an improvement in the company's efficiency in generating profit from its shareholders' equity. However, in 2024, the ROE decreased to 3.87%.

Although the ROE has varied annually, it has generally remained at a relatively low level, which may suggest that the company's profitability and efficiency in utilizing shareholder funds could be a concern. The ROE of 3.87% in 2024 implies that for every dollar of shareholders' equity, the company generated a profit of $0.0387.

It is essential for Digi International Inc to analyze the factors influencing its ROE and implement strategies to enhance shareholder value through improved profitability and efficient utilization of equity. Continued monitoring and proactive measures may be necessary to sustain or enhance the company's ROE in the future.