ESCO Technologies Inc (ESE)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 92,545 | 82,320 | 63,496 | 99,411 | 81,039 |
| Total stockholders’ equity | US$ in thousands | 1,131,140 | 1,048,160 | 1,019,700 | 959,026 | 826,222 |
| ROE | 8.18% | 7.85% | 6.23% | 10.37% | 9.81% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $92,545K ÷ $1,131,140K
= 8.18%
The return on equity (ROE) for Esco Technologies, Inc. has shown fluctuations over the past five years. In 2023, the ROE increased to 8.18% from 7.85% in 2022, indicating improved profitability in utilizing shareholder equity. However, compared to 2020 and 2019, where the ROE was higher at 10.61% and 9.81% respectively, the 2023 ROE is relatively lower.
The ROE reflects the company's ability to generate profits from the shareholders' investments. A higher ROE is generally preferred as it signifies more efficient use of equity capital. Therefore, Esco Technologies, Inc. should continue to focus on improving its profitability and efficiency in order to enhance its ROE and maximize shareholder value.
Peer comparison
Sep 30, 2023