Matthews International Corporation (MATW)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -59,660 | 39,291 | -99,774 | 2,910 | -87,155 |
| Total stockholders’ equity | US$ in thousands | 437,158 | 525,668 | 487,352 | 636,548 | 610,807 |
| ROE | -13.65% | 7.47% | -20.47% | 0.46% | -14.27% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-59,660K ÷ $437,158K
= -13.65%
Matthews International Corporation's return on equity (ROE) has fluctuated significantly over the past five years. In Sep 2024, the ROE was -13.65%, indicating a negative return on equity, which may raise concerns for investors and stakeholders. This significant decrease from the previous year's ROE of 7.47% suggests potential challenges in generating profits relative to shareholders' equity.
In contrast, the ROE was negative in Sep 2020 at -14.27%, indicating a similar trend of unprofitability. However, there was a slight improvement in Sep 2021, with the ROE increasing to 0.46%, although still relatively low.
The most concerning ROE was in Sep 2022 at -20.47%, indicating a sharp decline in profitability and potential operational inefficiencies or financial difficulties during that period.
Overall, the fluctuating ROE over the past five years reflects inconsistencies in the company's ability to generate profits relative to shareholders' equity. Investors are likely to closely monitor future financial performance to assess the company's ability to enhance shareholder value.