Prestige Brand Holdings Inc (PBH)

Return on equity (ROE)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Net income (ttm)	US$ in thousands	209,339	-80,671	-81,766	-84,302	-82,306	210,332	208,596	202,898	205,381	188,809	179,467	178,731	164,682	166,214	163,399	152,062	142,281	-34,039	-33,930	-36,341
Total stockholders’ equity	US$ in thousands	1,655,080	1,600,580	1,535,960	1,480,300	1,447,080	1,686,860	1,619,840	1,584,740	1,577,610	1,518,320	1,461,650	1,416,250	1,358,300	1,323,220	1,278,220	1,227,010	1,170,970	1,156,490	1,112,790	1,101,620
ROE		12.65%	-5.04%	-5.32%	-5.69%	-5.69%	12.47%	12.88%	12.80%	13.02%	12.44%	12.28%	12.62%	12.12%	12.56%	12.78%	12.39%	12.15%	-2.94%	-3.05%	-3.30%

March 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $209,339K ÷ $1,655,080K
= 12.65%

The return on equity (ROE) for Prestige Brand Holdings Inc has shown variability over the past several quarters. From March 31, 2019 to December 31, 2020, the ROE remained relatively stable within the range of 12.12% to 12.88%, indicating consistent performance in generating profits relative to shareholders' equity.

However, there was a significant decline in ROE in the next few quarters, with negative values recorded from March 31, 2021 to December 31, 2023. This negative trend suggests that the company's profitability as a percentage of shareholder equity decreased, indicating potential challenges in generating returns for shareholders during this period.

It is important for investors and analysts to further investigate the factors contributing to the declining ROE, such as changes in profitability, efficiency, financial leverage, or overall market conditions. Additionally, strategies to improve ROE should be considered to enhance the company's long-term financial performance and value creation for shareholders.