Ethan Allen Interiors Inc (ETD)
Return on equity (ROE)
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 51,596 | 57,841 | 61,189 | 63,596 | 63,816 | 70,708 | 80,111 | 90,866 | 105,807 | 111,921 | 114,279 | 113,007 | 103,280 | 89,922 | 80,816 | 70,805 | 60,005 | 29,775 | 13,944 | 4,147 |
| Total stockholders’ equity | US$ in thousands | 482,269 | 479,242 | 478,816 | 474,725 | 482,980 | 477,391 | 472,926 | 462,584 | 471,028 | 453,203 | 437,085 | 415,772 | 407,349 | 383,976 | 365,769 | 345,070 | 351,443 | 356,602 | 347,579 | 332,941 |
| ROE | 10.70% | 12.07% | 12.78% | 13.40% | 13.21% | 14.81% | 16.94% | 19.64% | 22.46% | 24.70% | 26.15% | 27.18% | 25.35% | 23.42% | 22.09% | 20.52% | 17.07% | 8.35% | 4.01% | 1.25% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $51,596K ÷ $482,269K
= 10.70%
The analysis of Ethan Allen Interiors Inc.'s return on equity (ROE) from September 2020 through June 2025 indicates significant fluctuations over this period, reflecting changes in the company's profitability relative to shareholders’ equity.
Initially, the ROE was notably low, at approximately 1.25% at the end of September 2020. This suggests that during this time, the company generated minimal profit relative to its equity base, potentially due to the economic impact of the COVID-19 pandemic, operational challenges, or lower demand in the home furnishings segment.
Throughout the following quarters, a marked upward trend was observed. By December 2020, ROE increased to 4.01%, and further growth was evident as it continued to improve, reaching 8.35% in March 2021. The most significant increase occurred between March 2021 and September 2021, where ROE expanded sharply from 8.35% to 20.52%, signaling a period of robust profitability and possibly reflecting operational improvements, successful strategic initiatives, or favorable market conditions.
Between September 2021 and June 2022, the ROE stabilized at elevated levels, reaching a peak of approximately 27.18% in September 2022. This period signifies that the company was generating strong returns on shareholders’ equity, potentially aided by increased sales, improved gross margins, or effective cost management.
Subsequently, from December 2022 onward, a gradual decline in ROE was observed, decreasing from 26.15% in December 2022 to approximately 13.21% in June 2024. The decline indicates either a reduction in profitability or increasing shareholders’ equity, or a combination of both. By September 2023, the ROE further decreased to 19.64%, and continuing into the following months, it declined progressively, reaching around 10.70% by June 2025.
This declining trend in recent periods suggests that while the company maintained relatively strong ROE levels through 2022, subsequent factors such as market saturation, increased competition, higher operating costs, or changes in asset efficiency may have contributed to the reduced profitability relative to equity. The trend indicates a move towards more moderate returns, aligning with typical cyclical or market-driven adjustments.
Overall, the ROE trajectory reflects an initial period of modest profitability, a rapid ascent to high levels possibly driven by operational enhancements or favorable external factors, followed by a gradual normalization and stabilization of returns at lower levels. This pattern underscores the company's evolving financial performance and the importance of continued strategic management to sustain profitability.
Peer comparison
Jun 30, 2025