Hillenbrand Inc (HI)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -211,000 | 569,700 | 208,900 | 249,900 | -60,100 |
| Total stockholders’ equity | US$ in thousands | 1,423,000 | 1,630,300 | 1,082,900 | 1,209,600 | 1,059,000 |
| ROE | -14.83% | 34.94% | 19.29% | 20.66% | -5.68% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-211,000K ÷ $1,423,000K
= -14.83%
The return on equity (ROE) for Hillenbrand Inc has fluctuated over the past five years, ranging from -14.83% in 2024 to a high of 34.94% in 2023.
In 2024, the negative ROE of -14.83% indicates that the company's net income was insufficient to generate a positive return for its shareholders based on the equity invested in the business. This could be a red flag for investors as it suggests the company may be struggling to generate profits relative to its shareholder equity.
On the other hand, the high ROE of 34.94% in 2023 implies that the company was able to generate significant returns for its shareholders relative to the equity invested. This may indicate strong profitability and efficiency in utilizing shareholder funds to generate earnings.
The ROE for 2022 and 2021 was around 19-20%, which suggests a moderate level of return on equity, indicating a reasonable balance between profitability and equity utilization.
Finally, in 2020, the company experienced a negative ROE of -5.68%, which may indicate financial difficulties or inefficiencies in utilizing shareholder funds to generate profits.
Overall, the varying ROE figures for Hillenbrand Inc over the past five years suggest fluctuations in profitability and efficiency in utilizing shareholder equity, with potential areas of concern in the years with negative ROE and strengths in years with higher ROE. Investors should carefully consider these trends when evaluating the company's financial performance and future prospects.
Peer comparison
Sep 30, 2024