DocuSign Inc (DOCU)

Return on equity (ROE)

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Net income US$ in thousands 1,067,880 73,980 -97,454 -69,976 -243,267
Total stockholders’ equity US$ in thousands 2,002,690 1,129,740 617,287 275,503 325,737
ROE 53.32% 6.55% -15.79% -25.40% -74.68%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,067,880K ÷ $2,002,690K
= 53.32%

The return on equity (ROE) for DocuSign Inc has displayed a significant improvement over the past few years. Starting from a negative ROE of -74.68% as of January 31, 2021, the company experienced gradual progress, moving to -25.40% in January 31, 2022, and further improving to -15.79% by January 31, 2023. This indicates a positive trend in the company's ability to generate profits from shareholders' equity.

The most notable improvement occurred in the most recent period, with an ROE of 53.32% as of January 31, 2025. This significant increase demonstrates the company's enhanced profitability and efficiency in utilizing shareholder equity to generate returns.

Overall, the positive trajectory of DocuSign Inc's ROE showcases an improvement in the company's financial performance and effectiveness in generating profits relative to shareholders' equity. It suggests that the company is efficiently utilizing its resources and capital to create value for its shareholders.