Insteel Industries Inc (IIIN)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 22,424 | 32,415 | 51,095 | 79,089 | 113,005 | 125,011 | 125,857 | 105,693 | 81,596 | 66,610 | 48,884 | 37,153 | 26,597 | 19,009 | 9,816 | 5,342 | 2,027 | 5,598 | 16,773 | 27,451 |
| Total stockholders’ equity | US$ in thousands | 333,595 | 381,505 | 375,066 | 364,978 | 360,674 | 389,744 | 364,924 | 325,147 | 286,020 | 302,038 | 276,996 | 258,736 | 243,734 | 264,803 | 257,066 | 250,831 | 246,180 | 246,017 | 248,324 | 246,530 |
| ROE | 6.72% | 8.50% | 13.62% | 21.67% | 31.33% | 32.08% | 34.49% | 32.51% | 28.53% | 22.05% | 17.65% | 14.36% | 10.91% | 7.18% | 3.82% | 2.13% | 0.82% | 2.28% | 6.75% | 11.13% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $22,424K ÷ $333,595K
= 6.72%
The return on equity (ROE) for Insteel Industries Inc has displayed a fluctuating trend over the past several periods. Starting from Mar 31, 2019, the ROE was relatively low at 2.28% and gradually increased to its peak of 34.49% by Jun 30, 2022. This period saw a significant improvement in the company's profitability and efficiency in generating returns for its shareholders.
However, from Jun 30, 2022, to Jun 30, 2023, there was a gradual decline in ROE, indicating a reduction in shareholder value creation. Despite this decline, the ROE remained above 10% until the quarter ended Mar 31, 2023, suggesting a decent performance in terms of generating profits relative to shareholders' equity.
The most recent ROE of 6.72% as of Dec 31, 2023, reflects a further decrease in profitability compared to the previous quarters. It is important for the company to monitor and improve its ROE to ensure sustained value creation for its shareholders in the long term.
Peer comparison
Dec 31, 2023