Liquidity Services Inc (LQDT)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 19,991 | 20,978 | 40,324 | 50,949 | -3,774 |
| Total stockholders’ equity | US$ in thousands | 182,560 | 161,533 | 154,536 | 135,015 | 111,815 |
| ROE | 10.95% | 12.99% | 26.09% | 37.74% | -3.38% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $19,991K ÷ $182,560K
= 10.95%
Liquidity Services Inc's return on equity (ROE) has fluctuated over the past five years. The ROE decreased from 37.74% in 2021 to 26.09% in 2022 before further declining to 12.99% in 2023 and 10.95% in 2024. Notably, the ROE was negative in 2020 at -3.38%.
The declining trend in ROE from 2021 to 2024 suggests that the company's profitability in relation to its shareholders' equity has weakened over this period. This decrease may be attributed to factors such as lower net income, increased equity from additional investments, or a combination of both.
It is recommended that investors and stakeholders closely monitor these trends in ROE to assess the company's financial performance and evaluate the effectiveness of its management in generating returns for shareholders. Further analysis of the underlying reasons for the fluctuations in ROE would provide additional insight into Liquidity Services Inc's financial health and operational efficiency.
Peer comparison
Sep 30, 2024