Korn Ferry (KFY)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 247,007 | 247,664 | 185,153 | 169,154 | 151,459 | 103,635 | 178,887 | 209,529 | 253,699 | 326,553 | 328,784 | 326,360 | 300,886 | 268,104 | 220,110 | 114,454 | 47,462 | 16,136 | 31,162 | 104,946 |
| Total stockholders’ equity | US$ in thousands | 1,792,740 | 1,777,740 | 1,753,840 | 1,733,060 | 1,703,620 | 1,656,150 | 1,348,060 | 1,648,070 | 1,608,980 | 1,578,050 | 1,564,750 | 1,544,350 | 1,531,280 | 1,479,520 | 1,417,190 | 1,366,390 | 1,293,190 | 1,219,970 | 1,215,660 | 1,221,380 |
| ROE | 13.78% | 13.93% | 10.56% | 9.76% | 8.89% | 6.26% | 13.27% | 12.71% | 15.77% | 20.69% | 21.01% | 21.13% | 19.65% | 18.12% | 15.53% | 8.38% | 3.67% | 1.32% | 2.56% | 8.59% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $247,007K ÷ $1,792,740K
= 13.78%
The analysis of Korn Ferry's return on equity (ROE) over the period from April 2020 to January 2025 reveals significant fluctuations with an overall trend of initial decline followed by a subsequent recovery.
In April 2020, the ROE was approximately 8.59%, indicating moderate profitability relative to shareholders' equity amid the early impact of the COVID-19 pandemic. By July 2020, the ROE sharply declined to approximately 2.56%, and continued to fall through October 2020 to around 1.32%. These declines correspond to the economic disruptions caused by the global health crisis, likely reflecting reduced net income and/or increased equity levels relative to net income during that period.
The ROE began to recover starting January 2021, reaching approximately 3.67%, with further substantial improvements over the subsequent year. Notably, by July 2021, the ROE surged to around 15.53%, and by October 2021, it climbed to approximately 18.12%. The upward trend persisted into early 2022, with ROE reaching 19.65% in January 2022 and surpassing 21% mid-2022, peaking at about 21.13% in April 2022. This indicates a period of robust profitability, possibly driven by operational efficiencies, strong financial performance, and a favorable economic environment.
From mid-2022 onwards, the ROE stabilized at elevated levels—hovering around 20%—before experiencing a decline starting in late 2022 to approximately 15.77% in January 2023. This downward movement continued into April and July 2023, with ROE decreasing to about 12.71% and 13.27%, respectively. The trend indicating reduced profitability or increased equity base was observed during this interval.
A notable decline occurred by October 2023, with ROE falling sharply to 6.26%, representing a significant contraction of profitability relative to equity. However, subsequent data show a partial recovery: by January 2024, the ROE increased back to approximately 8.89%, and further improvements were recorded into the middle of 2024, reaching around 10.56% in July. The data for October 2024 indicate a substantial rebound, with ROE rising to approximately 13.93%. Continuing this upward trend, ROE by January 2025 reached about 13.78%.
Overall, Korn Ferry's ROE experienced a pronounced dip during the early stages of the COVID-19 pandemic, followed by a period of strong recovery and growth through 2021 and mid-2022. The subsequent decline in late 2022 and early 2023 suggests a period of operational or market challenges, but recent data indicate a recovery trajectory with ROE approaching prior high levels. This pattern reflects typical cyclical profitability influenced by macroeconomic factors, strategic corporate performance, and possibly changes in leverage or equity structure over the period.
Peer comparison
Jan 31, 2025