Mueller Water Products (MWA)

Return on equity (ROE)

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Net income US$ in thousands 115,900 85,500 76,600 70,400 72,000
Total stockholders’ equity US$ in thousands 810,100 711,500 669,300 694,900 640,700
ROE 14.31% 12.02% 11.44% 10.13% 11.24%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $115,900K ÷ $810,100K
= 14.31%

The analysis of Mueller Water Products' return on equity (ROE) over the specified period reveals a general upward trend in shareholder profitability. As of September 30, 2020, the ROE was 11.24%, indicating the company's efficiency in generating profit from shareholders' equity during that fiscal year. In the subsequent year, 2021, the ROE declined to 10.13%, reflecting a reduction in profitability or potential changes in net income or shareholders' equity structure.

However, starting from 2022, the ROE demonstrated a recovery and incremental improvement, reaching 11.44%. This increase suggests an enhancement in the company's ability to generate profits relative to its equity base. The continued positive trajectory persisted into 2023, with ROE progressing to 12.02%, indicating further strengthening in operational efficiency or profitability margins.

Most notably, by September 30, 2024, the ROE had increased to 14.31%, constituting a significant improvement over the initial figure in 2020. This sustained upward movement over the four-year span points towards an overall enhancement in the company's internal profitability metrics and returns to shareholders. It also may reflect favorable operational performances, improved profit margins, or effective management of equity.

In summary, Mueller Water Products' ROE has demonstrated resilience and positive growth over the period, culminating in a notable increase in 2024. This trend highlights the company's evolving capacity to generate higher returns on shareholders' investments, implying an increasingly efficient utilization of equity capital during this time frame.