DXC Technology Co (DXC)

Return on equity (ROE)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Net income (ttm) US$ in thousands 389,000 -75,000 24,000 81,000 91,000 -467,000 -564,000 -636,000 -570,000 718,000 757,000 542,000 718,000 -610,000 390,000 334,000 -149,000 -2,846,000 -3,862,000 -5,737,000
Total stockholders’ equity US$ in thousands 3,490,000 2,990,000 2,981,000 2,850,000 2,811,000 3,107,000 3,467,000 3,603,000 3,820,000 4,952,000 4,936,000 5,049,000 5,375,000 5,087,000 5,083,000 5,386,000 5,308,000 5,995,000 4,751,000 4,593,000
ROE 11.15% -2.51% 0.81% 2.84% 3.24% -15.03% -16.27% -17.65% -14.92% 14.50% 15.34% 10.73% 13.36% -11.99% 7.67% 6.20% -2.81% -47.47% -81.29% -124.91%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $389,000K ÷ $3,490,000K
= 11.15%

Based on the provided data, DXC Technology Co's return on equity (ROE) has shown a significant improvement over the period. The ROE was negative in the initial quarters of June 2020 to December 2021, indicating that the company was generating losses and had low profitability relative to shareholders' equity.

However, starting from March 2021, the trend reversed, and the ROE turned positive. This positive trend continued with steady improvements in the ROE figures up to March 2025. The company's ROE fluctuated over the period, but overall, there was a clear upward trajectory.

The ROE reached its peak in September 2022 at 15.34%, indicating that DXC Technology Co was efficiently utilizing shareholders' equity to generate profits. Although there were slight declines in ROE in the subsequent quarters, the company managed to maintain positive ROE figures.

In summary, DXC Technology Co's ROE showed a promising recovery and improvement over time, reflecting the company's efforts to enhance profitability and generate higher returns for its shareholders. The positive trend in ROE is a positive indicator of the company's financial performance and management's effectiveness in utilizing equity to drive shareholder value.