DXC Technology Co (DXC)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 389,000 | 91,000 | -566,000 | 718,000 | -146,000 |
| Total stockholders’ equity | US$ in thousands | 3,229,000 | 2,811,000 | 3,497,000 | 5,052,000 | 5,308,000 |
| ROE | 12.05% | 3.24% | -16.19% | 14.21% | -2.75% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $389,000K ÷ $3,229,000K
= 12.05%
DXC Technology Co's return on equity (ROE) has exhibited significant fluctuations over the past 5 years. The company experienced a negative ROE of -2.75% as of March 31, 2021, reflecting a situation where the company was not efficiently utilizing shareholder equity to generate profits.
However, the ROE improved substantially to 14.21% by March 31, 2022, indicating a better utilization of equity to generate profits. This positive trend was not sustained, as the ROE decreased sharply to -16.19% by March 31, 2023, indicating a decline in the company's profitability relative to its equity.
By March 31, 2024, the ROE had recovered to 3.24%, indicating some improvement in the company's profitability. This improvement was further built upon, with the ROE reaching 12.05% by March 31, 2025, indicating a more efficient use of equity to generate profits compared to the previous years.
Overall, the company's ROE has been volatile, showing fluctuations from negative to positive levels over the past 5 years. DXC Technology Co should focus on sustaining positive ROE levels to demonstrate effective utilization of equity and enhance shareholder value in the long term.
Peer comparison
Mar 31, 2025