WK Kellogg Co (KLG)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Net income (ttm) US$ in thousands 72,000 68,000 121,000
Total stockholders’ equity US$ in thousands 317,000 316,000 336,000
ROE 22.71% 21.52% 36.01%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $72,000K ÷ $317,000K
= 22.71%

WK Kellogg Co's return on equity (ROE) has shown variability over the course of the year, ranging from 21.52% to 36.01%. In June 2024, the company achieved an impressive ROE of 36.01%, indicating efficient utilization of shareholders' equity to generate profits. However, the ROE decreased to 21.52% in September 2024 before rebounding to 22.71% by December 2024.

These fluctuations in ROE suggest that the company may be experiencing changes in its profitability and efficiency in utilizing equity. A higher ROE indicates better profitability and efficient use of equity, while a lower ROE may signal decreased profitability or inefficient utilization of shareholder investments.

It is recommended for WK Kellogg Co to further analyze the factors contributing to these fluctuations in ROE in order to identify areas for improvement and maintain consistent profitability and shareholder value.