Innovex International, Inc (INVX)

Return on equity (ROE)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 144,476 127,319 92,578 62,634 -26,986 -21,691 604 -1,492 20,752 11,699 450 -62,727 -89,080 -102,577 -127,997 -75,822 -50,353 -45,428 -30,768 -12,115
Total stockholders’ equity US$ in thousands 995,553 978,376 958,156 904,351 852,524 857,363 881,260 307,946 879,409 880,378 874,916 864,837 868,689 887,775 897,108 979,777 995,324 1,008,270 1,041,530 1,037,560
ROE 14.51% 13.01% 9.66% 6.93% -3.17% -2.53% 0.07% -0.48% 2.36% 1.33% 0.05% -7.25% -10.25% -11.55% -14.27% -7.74% -5.06% -4.51% -2.95% -1.17%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $144,476K ÷ $995,553K
= 14.51%

The analysis of Innovex International, Inc.'s return on equity (ROE) over the given period reveals a trajectory characterized initially by sustained negative values, followed by a gradual transition toward positive territory, and more recently, a notable upward trend.

From September 2020 through September 2021, ROE remained consistently negative, with figures ranging from -1.17% to -7.74%. This persistent negative ROE indicates that during this period, the company was not generating sufficient net income relative to shareholders' equity, implying challenges in profitability or possibly substantial equity investing without corresponding earnings.

In the subsequent period extending through December 2022, the negative trend continued but with some fluctuation. ROE deepened to as low as -14.27% in December 2021, before showing signs of improvement by the end of 2022, reaching a marginal positive of 0.05%. This suggests that the company's profitability was improving subtly, possibly due to operational restructuring, cost management, or strategic initiatives beginning to pay off.

Entering 2023, there is evidence of a positive turn; ROE rose to 1.33% in March and further increased to 2.36% in June. These figures reflect a momentary return to profitability on an equity basis, indicating improved net income relative to shareholders' investment, although this progress was not yet strongly sustained.

In the latter part of 2023, the ROE experienced volatility, dropping to -0.48% in September, then slightly rebounding to 0.07% in December. This fluctuation underscores ongoing variability in earnings performance and possibly external or internal factors influencing profitability.

The most recent data points from 2024 and 2025 depict a significant positive shift. ROE exceeded 6.93% in September 2024, with subsequent increases to 9.66% by the end of 2024, and a notable rise to 13.01% in March 2025, culminating with 14.51% in June 2025. This upward trend indicates that Innovex International, Inc. has entered a period of robust profitability, efficiently translating shareholders’ equity into earnings.

Overall, the ROE progression from negative figures to double-digit positive values over an approximate five-year period reflects a substantial turnaround in the company's financial performance and operational efficiency. The recent trend suggests improved strategic execution and possibly favorable market or industry conditions contributing to sustainable profitability.