Mueller Water Products (MWA)

Return on equity (ROE)

Mar 31, 2025 Dec 31, 2024 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
Net income (ttm) US$ in thousands 143,900 136,900 115,900 123,100 100,300 77,300 85,500 75,400 77,400 79,700 76,600 87,900 75,800 73,100 70,400 78,700 75,500 78,400 72,000 85,500
Total stockholders’ equity US$ in thousands 873,600 834,100 810,100 791,600 754,500 731,200 711,500 714,200 700,900 687,800 669,300 703,800 706,100 691,900 694,900 683,200 669,400 655,200 640,700 609,700
ROE 16.47% 16.41% 14.31% 15.55% 13.29% 10.57% 12.02% 10.56% 11.04% 11.59% 11.44% 12.49% 10.74% 10.57% 10.13% 11.52% 11.28% 11.97% 11.24% 14.02%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $143,900K ÷ $873,600K
= 16.47%

The analysis of Mueller Water Products’ return on equity (ROE) over the period from June 2020 to March 2025 reveals notable fluctuations and an overall upward trend in recent periods. Initially, ROE was approximately 14.02% as of June 2020, indicating a relatively strong ability to generate profit from shareholders’ equity. Subsequently, there was a decline through late 2020 and 2021, with ROE dipping below 12% on multiple occasions, reaching a low of around 10.13% in September 2021. This decline may reflect challenges during that period, such as increased competition, fluctuations in net income, or changes in net equity.

From late 2021 onwards, the ROE exhibited periods of slight recovery and stability, remaining mostly in the 10.5% to 12.5% range until mid-2023. A significant upward movement is observed beginning in March 2024, with ROE increasing from approximately 13.29% to a peak of 16.47% in March 2025. This upward trajectory suggests an improvement in profitability and/or a reduction in shareholders’ equity relative to net income.

Overall, the trend indicates that Mueller Water Products experienced periods of profitability compression during 2020 and 2021 but has shown signs of strengthening financial performance from 2024 onward. The recent peak in ROE suggests enhanced efficiency in generating profit on shareholders’ investments, potentially driven by operational improvements, strategic initiatives, or favorable market conditions. The fluctuations and recent growth imply a company that has faced volatility but is demonstrating a capacity for earnings recuperation and value creation in the latest reporting periods.