Energizer Holdings Inc (ENR)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 140,500 | -231,500 | 160,900 | -93,300 | 51,100 |
| Total stockholders’ equity | US$ in thousands | 210,700 | 130,600 | 355,700 | 309,100 | 543,800 |
| ROE | 66.68% | -177.26% | 45.23% | -30.18% | 9.40% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $140,500K ÷ $210,700K
= 66.68%
Energizer Holdings Inc's return on equity (ROE) measures the company's ability to generate profits from the shareholders' equity invested in the business. Let's analyze the trend in Energizer's ROE over the past five years.
In 2019, the ROE was 7.19%, indicating that the company generated a return of 7.19% on the shareholders' equity for that year. This suggests that the company was moderately efficient in utilizing the capital contributed by its shareholders to generate profits.
The ROE for the following year, 2020, was -35.43%, signifying a significant decline. This negative figure indicates that the company incurred a net loss for that year, resulting in a negative return on the shareholders' equity. This could imply that the company faced operational or strategic challenges during that period.
Moving on to 2021, there was a substantial improvement in the ROE, with a figure of 40.68%. This indicates a strong recovery, as the company was able to generate a positive return on equity, reflecting improved profitability and efficiency in capital utilization.
In 2022, there was a drastic downturn as the ROE plummeted to -180.32%. This sharp negative performance suggests that the company encountered significant financial difficulties, leading to a substantial erosion of shareholders' equity through losses.
Most recently, in 2023, the company's ROE dramatically rebounded to 66.68%, indicating a remarkable recovery and robust profitability, with the company generating a substantial return on shareholders' equity.
Overall, the trend in Energizer Holdings Inc's ROE has been volatile, with significant fluctuations from year to year. While the company experienced periods of negative and low ROE, particularly in 2020 and 2022, it has also demonstrated the ability to bounce back with strong ROE figures, as seen in 2021 and 2023. It is essential for investors and stakeholders to closely monitor the company's financial performance and profitability to gauge the sustainability and consistency of its return on equity.
Peer comparison
Sep 30, 2023