H B Fuller Company (FUL)
Return on equity (ROE)
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 144,906 | 180,313 | 161,393 | 123,719 | 130,817 |
| Total stockholders’ equity | US$ in thousands | 1,755,200 | 1,610,170 | 1,596,770 | 1,381,320 | 1,222,350 |
| ROE | 8.26% | 11.20% | 10.11% | 8.96% | 10.70% |
December 2, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $144,906K ÷ $1,755,200K
= 8.26%
The return on equity (ROE) for H.B. Fuller Company has fluctuated over the past five years. In 2019, the ROE stood at 10.70% but decreased to 8.96% in 2020 before rebounding to 10.11% in 2021. However, in 2022 and 2023, the ROE experienced a further decline to 11.20% and 8.26% respectively.
This trend indicates some variability in the company's ability to generate profits from shareholders' equity. A decreasing ROE could be a cause for concern as it signifies diminishing profitability in relation to the shareholders' investments. It is essential for the company to closely examine the factors contributing to this decline to ensure sustained performance and to potentially implement strategies to improve ROE in the future.