Enerpac Tool Group Corp (EPAC)
Return on equity (ROE)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 85,749 | 46,561 | 15,686 | 38,077 | 723 |
| Total stockholders’ equity | US$ in thousands | 391,979 | 326,620 | 318,611 | 412,198 | 359,226 |
| ROE | 21.88% | 14.26% | 4.92% | 9.24% | 0.20% |
August 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $85,749K ÷ $391,979K
= 21.88%
The Return on Equity (ROE) for Enerpac Tool Group Corp has shown a positive trend over the past five years, increasing from 0.20% in 2020 to 21.88% in 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits and create value.
The significant improvement in ROE from 2020 to 2024 reflects enhanced profitability and operational efficiency within the company. The steady upward trajectory suggests that management has been successful in implementing strategies to boost the company's bottom line and increase returns for its shareholders.
The substantial ROE of 21.88% in 2024 is particularly noteworthy, as it indicates that Enerpac Tool Group Corp generated $21.88 in net income for every dollar of shareholders' equity. This demonstrates a strong performance in generating profits relative to the equity invested by shareholders.
Overall, the trend of increasing ROE over the years reflects positively on the company's financial health and efficiency in utilizing its resources to drive profitability and value creation.
Peer comparison
Aug 31, 2024