MarineMax Inc (HZO)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 38,066 | 109,282 | 197,989 | 154,979 | 74,634 |
| Total stockholders’ equity | US$ in thousands | 975,795 | 915,843 | 782,666 | 594,892 | 455,397 |
| ROE | 3.90% | 11.93% | 25.30% | 26.05% | 16.39% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $38,066K ÷ $975,795K
= 3.90%
MarineMax Inc's return on equity (ROE) has exhibited a downward trend over the past five years. In September 2020, the ROE stood at 16.39%, reaching its peak in recent years. However, the ROE declined significantly in the subsequent years to 26.05% in September 2021, 25.30% in September 2022, 11.93% in September 2023, and further dropped to 3.90% in September 2024.
This declining trend in ROE indicates that MarineMax Inc's profitability relative to shareholders' equity has weakened over time. A decreasing ROE can be a cause for concern as it suggests that the company is not generating as much profit from its equity as it did in the past. MarineMax Inc should closely evaluate its financial performance, profitability drivers, and operational efficiency to reverse this declining trend in ROE and enhance shareholder value in the future.
Peer comparison
Sep 30, 2024