Hawkins Inc (HWKN)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 84,345 | 75,363 | 60,041 | 51,542 | 40,980 |
| Total stockholders’ equity | US$ in thousands | 460,292 | 406,026 | 350,016 | 302,601 | 265,246 |
| ROE | 18.32% | 18.56% | 17.15% | 17.03% | 15.45% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $84,345K ÷ $460,292K
= 18.32%
Based on the data provided, Hawkins Inc's return on equity (ROE) has been showing a positive trend over the past five years. The ROE increased from 15.45% as of March 31, 2021, to 18.32% as of March 31, 2025. This indicates that the company is becoming more efficient in generating profits from the shareholders' equity.
The consistent improvement in ROE reflects positively on the company's ability to utilize its equity investment effectively to generate earnings. This could be attributed to various factors such as increasing profitability, efficient cost management, and effective utilization of assets.
A higher ROE indicates that the company is generating more profits with the same amount of equity, which is favorable for shareholders as it signifies higher returns on their investments. However, it is essential to consider other financial metrics and qualitative factors to get a holistic view of the company's financial performance and sustainability of the ROE growth trend.
Peer comparison
Mar 31, 2025