Jacobs Solutions Inc. (J)
Return on equity (ROE)
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 806,093 | 665,777 | 644,039 | 477,030 | 491,845 |
Total stockholders’ equity | US$ in thousands | 4,549,470 | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 |
ROE | 17.72% | 10.17% | 10.63% | 8.03% | 8.46% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $806,093K ÷ $4,549,470K
= 17.72%
Jacobs Solutions Inc.'s return on equity (ROE) has shown positive trends over the past five years. ROE has increased steadily from 8.46% in 2020 to 17.72% in 2024, indicating that the company is becoming more efficient in generating profits from shareholders' equity. The consistent improvement in ROE reflects positively on the company's management of its assets and liabilities to create shareholder value.
The rising ROE suggests that Jacobs Solutions Inc. is effectively leveraging its equity to generate higher returns for its shareholders. This could result from improved operational efficiency, better cost management, higher asset turnover, or increased profitability. Shareholders may view this trend favorably as it indicates that the company is effectively utilizing their investments to generate profits.
The increasing trend in ROE over the years signifies a positive outlook for Jacobs Solutions Inc.'s financial performance and shareholder value creation. However, it is essential to monitor this ratio over time to ensure sustained profitability and value creation for shareholders.
Peer comparison
Sep 30, 2024