Helen of Troy Ltd (HELE)
Return on equity (ROE)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 123,751 | 168,594 | 143,273 | 223,764 | 253,946 |
| Total stockholders’ equity | US$ in thousands | 1,683,440 | 1,637,440 | 1,488,810 | 1,327,340 | 1,239,350 |
| ROE | 7.35% | 10.30% | 9.62% | 16.86% | 20.49% |
February 28, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $123,751K ÷ $1,683,440K
= 7.35%
Helen of Troy Ltd's Return on Equity (ROE) has shown a gradual decline over the years, from 20.49% as of February 28, 2021, to 7.35% as of February 28, 2025. This decreasing trend indicates a decrease in the company's ability to generate profits from the shareholders' equity.
The ROE of 16.86% as of February 28, 2022, marked a significant drop from the previous year, reflecting a potential decrease in efficient utilization of equity. Subsequently, the ROE decreased to 9.62% as of February 28, 2023, signifying a continuation of the declining trend.
Although there was a slight improvement with a ROE of 10.30% as of February 29, 2024, the overall pattern remains downward, suggesting potential challenges in maintaining profitability relative to shareholders' equity. This declining ROE may raise concerns about the company's financial performance and effectiveness in generating returns for its equity investors over the analyzed period.