DocuSign Inc (DOCU)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,067,885 | 1,011,635 | 988,017 | 107,201 | 73,980 | 51,602 | -17,069 | -69,542 | -97,454 | -132,762 | -108,572 | -88,995 | -69,976 | -111,943 | -164,758 | -203,817 | -243,267 | -218,262 | -206,369 | -210,441 |
| Total stockholders’ equity | US$ in thousands | 2,002,690 | 1,989,380 | 1,961,410 | 1,137,000 | 1,129,740 | 965,033 | 847,759 | 749,492 | 617,287 | 468,506 | 407,131 | 348,949 | 275,503 | 239,569 | 211,876 | 243,237 | 325,737 | 426,032 | 501,891 | 522,788 |
| ROE | 53.32% | 50.85% | 50.37% | 9.43% | 6.55% | 5.35% | -2.01% | -9.28% | -15.79% | -28.34% | -26.67% | -25.50% | -25.40% | -46.73% | -77.76% | -83.79% | -74.68% | -51.23% | -41.12% | -40.25% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,067,885K ÷ $2,002,690K
= 53.32%
DocuSign Inc's return on equity (ROE) has exhibited a significant improvement over the past few years. From negative ROE figures in the range of -40% to -80% between April 2020 and July 2022, the company's ROE began to show a positive trend from October 2023 onwards. This positive momentum continued to strengthen, with ROE increasing gradually to 53.32% by January 2025.
The improvement in DocuSign's ROE indicates that the company has been more efficient in generating profits relative to its shareholders' equity. This may suggest enhanced operational performance, effective capital utilization, or improved financial management practices. Furthermore, the positive ROE figures from October 2023 onwards could indicate a turning point for the company towards sustainable profitability and value creation for its shareholders.
Investors and stakeholders may view this trend positively as increasing ROE is generally a favorable indicator of a company's financial health and potential for future growth and returns. It would be essential for the company to sustain this positive momentum and continue to enhance its profitability to maintain investor confidence and drive long-term shareholder value.
Peer comparison
Jan 31, 2025