Ethan Allen Interiors Inc (ETD)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 63,816 | 105,807 | 103,280 | 60,005 | 8,900 |
| Total stockholders’ equity | US$ in thousands | 482,980 | 471,028 | 407,349 | 351,443 | 328,065 |
| ROE | 13.21% | 22.46% | 25.35% | 17.07% | 2.71% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $63,816K ÷ $482,980K
= 13.21%
Ethan Allen Interiors Inc's return on equity (ROE) has exhibited fluctuating trends over the past five years. The ROE declined from 2.71% in 2020 to 17.07% in 2021, representing a significant improvement. However, in the subsequent years, the ROE decreased further to 25.35% in 2022 and 22.46% in 2023. Notably, the ROE fell to 13.21% in 2024, marking a decline from the previous year.
This downward trend in ROE indicates that the company's profitability relative to shareholders' equity has been decreasing in recent years. The significant drop in ROE from 2022 to 2024 raises concerns about the company's ability to generate returns for its shareholders. Further analysis of the company's financial performance, capital structure, profit margins, and asset utilization may provide insights into the factors impacting Ethan Allen Interiors Inc's declining ROE.
Peer comparison
Jun 30, 2024