Hillenbrand Inc (HI)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 569,700 | 208,900 | 249,900 | -60,100 | 121,400 |
| Total stockholders’ equity | US$ in thousands | 1,630,300 | 1,082,900 | 1,209,600 | 1,059,000 | 754,100 |
| ROE | 34.94% | 19.29% | 20.66% | -5.68% | 16.10% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $569,700K ÷ $1,630,300K
= 34.94%
Based on the provided data, Hillenbrand Inc's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2019, the ROE stood at 16.10%, indicating the company's ability to generate a profit from its shareholders' equity. The subsequent year, the ROE dropped to -5.68%, reflecting a negative return, suggesting potential inefficiencies in utilizing equity for profitability.
However, in 2021, there was a notable improvement as the ROE rebounded to 20.66%, signaling a recovery in the company's ability to generate profits from shareholders' equity. This trend continued into 2022, with the ROE further increasing to 19.29%, suggesting a sustained improvement in the company's performance.
The most recent data for 2023 shows a substantial rise in ROE to 34.94%, indicating a significant improvement in the company's ability to generate profits relative to its shareholder equity. This increase may be attributed to improved profitability or more efficient use of the company's equity.
Overall, the fluctuating trend in ROE over the years suggests evolving performance and variable efficiency in utilizing shareholder equity for generating profits. It may be important for stakeholders to closely monitor the company's strategies and financial performance to understand the factors underlying these fluctuations and to assess the sustainability of the recent improvement in ROE.
Peer comparison
Sep 30, 2023