Nextracker Inc. Class A Common Stock (NXT)

Return on equity (ROE)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	509,168	306,241	1,143	50,913	124,348
Total stockholders’ equity	US$ in thousands	1,628,130	961,013	-3,075,770	501,133	456,047
ROE		31.27%	31.87%	—	10.16%	27.27%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $509,168K ÷ $1,628,130K
= 31.27%

Based on the provided data, the return on equity (ROE) of Nextracker Inc. Class A Common Stock has exhibited fluctuations over the years.

As of March 31, 2021, the ROE was 27.27%, indicating that the company generated $0.2727 in net income for every dollar of equity during that period.

However, by March 31, 2022, the ROE decreased to 10.16%, reflecting a decline in profitability or a decrease in efficiency in utilizing shareholders' equity to generate profits.

The data for March 31, 2023, is missing, which makes it challenging to assess the company's performance for that period.

On a positive note, the ROE improved significantly by March 31, 2024, reaching 31.87%, suggesting a rebound in profitability and efficiency in utilizing equity.

Continuing the positive trend, by March 31, 2025, the ROE remained strong at 31.27%, indicating sustained profitability and effective utilization of shareholders' equity to generate returns.

Overall, the fluctuations in ROE over the years suggest variations in the company's financial performance and efficiency in generating profits relative to shareholders' equity. Investors and stakeholders may want to delve deeper into the company's financials to understand the factors driving these fluctuations and assess the sustainability of the improving trend observed in recent years.