Korn Ferry (KFY)
Return on equity (ROE)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 246,062 | 169,154 | 209,529 | 326,360 | 114,454 |
| Total stockholders’ equity | US$ in thousands | 1,866,460 | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 |
| ROE | 13.18% | 9.76% | 12.71% | 21.13% | 8.38% |
April 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $246,062K ÷ $1,866,460K
= 13.18%
The analysis of Korn Ferry's return on equity (ROE) over the specified period reveals notable fluctuations and an overall trend that merits detailed examination. At the end of April 2021, the company's ROE stood at 8.38%, reflecting a relatively modest level of profitability in relation to shareholders’ equity. Moving into April 2022, a significant increase is observed, with ROE rising sharply to 21.13%, indicating a period of enhanced profitability and efficient use of equity capital during this interval. This substantial improvement may be attributed to factors such as increased net income, strategic operational efficiencies, or favorable market conditions.
Subsequently, by April 2023, the ROE declined to 12.71%. Despite remaining above the 2021 level, this decrease suggests some reversal or moderation in profitability margins, possibly due to market dynamics, margin compression, or increased equity base diluting returns. The trend continues into April 2024, where the ROE further diminishes to 9.76%, approaching closer to the earlier low of 2021. Such a decline could reflect challenges in maintaining previous profit levels or increased equity without proportional profit growth.
Interestingly, projections for April 2025 indicate a recovery in ROE to 13.18%. This predicted increase suggests expectations of improved profitability, potentially driven by strategic initiatives, operational efficiencies, or favorable economic factors. Overall, Korn Ferry's ROE demonstrates significant variability within the four-year span, with a notable peak in 2022, a subsequent decline, and an anticipated rebound, indicating dynamic changes in profitability and effective management of shareholder equity over time.
Peer comparison
Apr 30, 2025