J & J Snack Foods Corp (JJSF)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 86,551 | 78,906 | 47,235 | 55,607 | 18,305 |
| Total stockholders’ equity | US$ in thousands | 956,970 | 911,518 | 863,169 | 845,654 | 809,498 |
| ROE | 9.04% | 8.66% | 5.47% | 6.58% | 2.26% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $86,551K ÷ $956,970K
= 9.04%
The Return on Equity (ROE) of J & J Snack Foods Corp has shown an increasing trend from 2.26% in 2020 to 9.04% in 2024. This indicates that the company's ability to generate profits from its shareholders' equity has been improving over the years. The upward trajectory of ROE suggests that the management has been effectively utilizing the company's equity to generate higher returns.
The ROE of 9.04% in 2024 reflects that for every dollar of shareholders' equity, the company generated a profit of approximately 9.04 cents. This is a positive sign as it signifies the company's profitability and efficiency in utilizing its equity capital to generate earnings.
It is important to note that ROE can be influenced by various factors such as profit margins, asset turnover, and financial leverage. Therefore, it is crucial for investors and stakeholders to analyze the components of ROE to understand the drivers behind the company's performance and assess the sustainability of its profitability.