Liquidity Services Inc (LQDT)

Return on equity (ROE)

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Net income (ttm) US$ in thousands 19,991 19,896 20,383 18,919 20,979 23,044 32,965 40,690 40,325 64,736 56,747 50,037 50,949 23,731 15,525 6,027 -3,683 -14,384 -19,246 -19,370
Total stockholders’ equity US$ in thousands 182,560 171,970 163,925 165,379 161,533 155,809 151,074 154,953 154,536 144,669 132,989 137,079 135,015 116,561 106,938 115,063 111,815 110,238 108,112 112,437
ROE 10.95% 11.57% 12.43% 11.44% 12.99% 14.79% 21.82% 26.26% 26.09% 44.75% 42.67% 36.50% 37.74% 20.36% 14.52% 5.24% -3.29% -13.05% -17.80% -17.23%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $19,991K ÷ $182,560K
= 10.95%

The return on equity (ROE) for Liquidity Services Inc has shown considerable variation over the past few years. ROE is a key financial ratio that measures a company's profitability by evaluating how effectively it is generating profits from the shareholders' equity.

From the data provided, we can observe fluctuations in Liquidity Services Inc's ROE, with values ranging from negative figures in previous years to positive percentages in recent periods. The ROE has ranged from -17.80% in December 2019 to a high of 44.75% in June 2022, indicating significant volatility in the company's performance.

The trend in ROE demonstrates fluctuations in the company's profitability and efficiency in generating returns for shareholders during the respective periods. An ROE of 10.95% in September 2024 suggests a moderate return on equity compared to the previous periods.

Overall, it is essential for Liquidity Services Inc to consistently monitor and improve its ROE to ensure sustained profitability and value creation for its shareholders. Understanding the factors driving these fluctuations in ROE can help the company make informed strategic decisions to enhance its financial performance and long-term sustainability.