Quanex Building Products (NX)
Return on equity (ROE)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 82,501 | 88,336 | 56,980 | 38,496 | -46,730 |
| Total stockholders’ equity | US$ in thousands | 545,554 | 464,835 | 419,782 | 355,759 | 330,187 |
| ROE | 15.12% | 19.00% | 13.57% | 10.82% | -14.15% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $82,501K ÷ $545,554K
= 15.12%
Quanex Building Products Corp's return on equity (ROE) has displayed fluctuating trends in the provided years.
In 2023, the ROE stood at 15.12%, indicating that for every dollar of shareholder equity, the company generated a profit of approximately 15.12 cents. This signifies a decrease from the previous year's ROE of 19.00%, signaling a potential decline in the company's efficiency in utilizing shareholders' equity to generate profits.
Comparing the 2023 ROE to that of 2021, there was initially an increase from 13.57% to 15.12%. This suggests an improvement in the company's ability to generate profits from the shareholder's equity.
However, in 2021, the ROE was 13.57%, reflecting a moderate return on equity compared to the following year. The 2021 ROE also shows an increase from 10.82% in 2020, indicating a positive trend in the company's ability to deliver returns to shareholders over these two years.
It is worth noting that in 2020, the company's ROE was 10.82%, marking a significant improvement from the negative ROE of -14.15% in 2019. This indicates that Quanex Building Products Corp managed to turn around its relative unprofitability from the prior year, showcasing a positive resurgence.
Overall, the analysis of the ROE trend demonstrates fluctuations over the years, with the company experiencing periods of both improvement and decline in its ability to generate profits from the shareholders' equity. These changes may be a result of various factors, including operational efficiency, financial leverage, and profitability. It would be essential for stakeholders to further investigate the underlying reasons for these fluctuations in ROE to gain a comprehensive understanding of Quanex Building Products Corp's performance and financial health.
Peer comparison
Oct 31, 2023