Greif Bros Corporation (GEF)
Return on equity (ROE)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 359,200 | 376,700 | 390,700 | 108,800 | 171,000 |
| Total stockholders’ equity | US$ in thousands | 1,947,900 | 1,761,300 | 1,514,300 | 1,152,200 | 1,133,100 |
| ROE | 18.44% | 21.39% | 25.80% | 9.44% | 15.09% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $359,200K ÷ $1,947,900K
= 18.44%
The return on equity (ROE) of Greif Inc has fluctuated over the past five years. In 2023, the ROE stood at 18.44%, showing a decline from the previous year's 21.39%. However, compared to 2019 and 2020, there has been an improvement. The company achieved an ROE of 25.80% in 2021, which was the highest in the given period, indicating a strong performance in utilizing shareholders' equity to generate profits. The 2023 ROE, while lower than the previous year, still indicates that the company is effectively using investor funds to generate profits. It's important to consider the underlying factors contributing to these fluctuations to gain a comprehensive understanding of the company's financial performance.