Vail Resorts Inc (MTN)
Return on equity (ROE)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 230,405 | 268,148 | 347,923 | 127,850 | 98,833 |
| Total stockholders’ equity | US$ in thousands | 723,537 | 1,003,950 | 1,612,440 | 1,594,600 | 1,316,740 |
| ROE | 31.84% | 26.71% | 21.58% | 8.02% | 7.51% |
July 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $230,405K ÷ $723,537K
= 31.84%
Over the past five years, Vail Resorts Inc's return on equity (ROE) has shown a positive trend, steadily increasing from 7.51% in 2020 to 31.84% in 2024. This indicates that the company has been increasingly efficient in generating profit from the shareholders' equity investment.
The significant growth in ROE reflects Vail Resorts Inc's ability to effectively utilize its equity capital to generate earnings. The 2024 ROE of 31.84% demonstrates that for every dollar of equity invested by shareholders, the company generated a return of approximately 31.84 cents in net income.
The improvement in ROE can be attributed to various factors such as effective cost management, revenue growth, operational efficiency, and strategic investments. It suggests that Vail Resorts Inc has been successful in optimizing its financial performance and creating value for its shareholders over the years.
Overall, the trend of increasing ROE for Vail Resorts Inc signifies a positive financial performance and indicates that the company is becoming more profitable and efficient in utilizing its shareholders' equity to generate returns.
Peer comparison
Jul 31, 2024