H&R Block Inc (HRB)

The return on equity (ROE) for H&R Block Inc. demonstrates significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company posted an ROE of approximately 165.66%, indicating that the company generated a substantial profit relative to its shareholders’ equity. This figure increased markedly by June 30, 2022, reaching approximately 261.62%, reflecting an improved efficiency in converting equity into profits.

A notable escalation occurred by June 30, 2023, with the ROE skyrocketing to approximately 1,726.86%. Such an extraordinary increase suggests a substantial enhancement in profitability and/or a significant reduction in shareholders’ equity, possibly due to extraordinary earnings, structural changes, or financial leveraging effects. This extraordinary level, however, warrants cautious examination, as extremely high ROE figures can sometimes result from minimal equity bases or accounting anomalies.

Following this peak, the ROE declined sharply to approximately 657.13% by June 30, 2024, and then stabilized somewhat, reaching around 681.44% by June 30, 2025. These subsequent figures, while still indicating robust profitability relative to equity, illustrate a retreat from the extreme levels observed in 2023. The reduction could be attributable to a normalization of earnings, increased equity base, or other operational and financial adjustments.

Overall, the trajectory of H&R Block’s ROE indicates periods of extraordinary profitability, particularly in 2023, with subsequent adjustments towards more sustainable levels. Nonetheless, the sustained high ROE figures, even after the decline, suggest the company maintains strong profitability margins relative to shareholders’ equity. However, the extreme ROE spike in 2023 emphasizes the importance of reviewing underlying factors such as accounting practices, one-time gains, or financial structuring that could have contributed to these extraordinary returns.

Peer comparison

Jun 30, 2025