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.