Keysight Technologies Inc (KEYS)

Return on equity (ROE)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income	US$ in thousands	1,057,000	1,124,000	894,000	627,000	621,000
Total stockholders’ equity	US$ in thousands	4,654,000	4,161,000	3,784,000	3,297,000	3,004,000
ROE		22.71%	27.01%	23.63%	19.02%	20.67%

October 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,057,000K ÷ $4,654,000K
= 22.71%

To analyze Keysight Technologies Inc's return on equity (ROE) over the past five years, we can observe the following trends:
1. The ROE for the fiscal year ending October 31, 2023, was 22.71%, showing a slight decrease from the previous year's 27.01%. This decline may indicate a reduction in the company's ability to generate profits from shareholders' equity.
2. In the fiscal year ending October 31, 2022, the ROE stood at 27.01%, exhibiting a significant improvement from 23.63% in the prior year. This suggests an enhanced ability to generate profits from the shareholders' investment.
3. The ROE for the fiscal year ending October 31, 2021, was 23.63%, marking a moderate increase from 19.02% in the fiscal year ending October 31, 2020. This improvement may indicate a better utilization of the shareholders' equity to generate earnings.
4. In the fiscal year ending October 31, 2019, the ROE was 20.67%, demonstrating a slight decline from the previous year. This may suggest a decrease in the company's profitability relative to its equity base.

Overall, the fluctuating ROE figures over the past five years indicate varying levels of profitability relative to shareholders' equity. It is essential for investors and stakeholders to closely monitor these trends to evaluate the company's efficiency in generating returns from equity investment.