PTC Inc (PTC)

Return on equity (ROE)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	376,333	245,540	313,081	476,923	130,695
Total stockholders’ equity	US$ in thousands	3,214,400	2,677,290	2,296,030	2,038,470	1,438,250
ROE		11.71%	9.17%	13.64%	23.40%	9.09%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $376,333K ÷ $3,214,400K
= 11.71%

To analyze PTC Inc's return on equity (ROE) over the past five years, we observe a fluctuating trend. In Sep 30, 2020, the ROE stood at 9.09%, which increased to 23.40% in Sep 30, 2021, reflecting a significant improvement. However, in the subsequent years, the ROE declined to 13.64% in Sep 30, 2022, then further dropped to 9.17% in Sep 30, 2023, before increasing slightly to 11.71% in Sep 30, 2024.

This variability in ROE indicates that PTC Inc's profitability relative to its shareholder equity has been inconsistent in recent years. A high ROE implies that the company is efficiently utilizing its equity to generate profits for shareholders, while a lower ROE suggests potential inefficiencies in this regard.

Further analysis and consideration of factors affecting the ROE, such as changes in net income, total equity, or financial leverage, would be necessary to gain a deeper understanding of PTC Inc's financial performance and strategies for improving shareholder returns.