MarineMax Inc (HZO)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 109,282 | 197,989 | 154,979 | 74,634 | 35,985 |
| Total stockholders’ equity | US$ in thousands | 915,843 | 782,666 | 594,892 | 455,397 | 368,819 |
| ROE | 11.93% | 25.30% | 26.05% | 16.39% | 9.76% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $109,282K ÷ $915,843K
= 11.93%
The return on equity (ROE) measures a company's profitability by evaluating how effectively it generates profit from shareholders' equity. Marinemax, Inc.'s ROE has fluctuated over the past five years, with a downward trend observed from 2019 to 2020, followed by a slight increase in 2021 and a further decrease in 2023.
The ROE decreased from 9.76% in 2019 to 16.39% in 2020, indicating a drop in the company's ability to generate profits from shareholders' equity. However, the ROE then improved to 26.05% in 2021, reflecting a recovery in profitability. Subsequently, the ROE declined to 25.30% in 2022 and further to 11.93% in 2023.
These variations in ROE suggest fluctuations in the company's profitability relative to its shareholders' equity. The declining trend in ROE from 2021 to 2023 indicates a potential decrease in the company's ability to generate profit from the equity invested by shareholders. It is essential for stakeholders to monitor these fluctuations and understand the underlying factors affecting Marinemax, Inc.'s profitability and shareholder value.
Peer comparison
Sep 30, 2023