QuinStreet Inc (QNST)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -31,331 | -68,866 | -5,248 | 23,555 | 18,102 |
| Total stockholders’ equity | US$ in thousands | 216,825 | 229,801 | 286,000 | 295,148 | 255,944 |
| ROE | -14.45% | -29.97% | -1.83% | 7.98% | 7.07% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-31,331K ÷ $216,825K
= -14.45%
QuinStreet Inc's return on equity (ROE) has fluctuated over the past five years. The company experienced a significant decrease in ROE from 7.98% in June 2021 to -1.83% in June 2022. This negative trend continued with ROE dropping further to -29.97% in June 2023, indicating a decline in the company's profitability and efficiency in generating returns for its shareholders. However, there was a slight improvement in ROE to -14.45% in June 2024, although it remains negative.
The negative ROE figures suggest that QuinStreet Inc is not effectively utilizing its shareholders' equity to generate profits. Investors may be concerned about the company's ability to generate sustainable returns on their investment. It is important for the company to address the underlying factors causing the low or negative ROE and implement strategies to improve profitability and efficiency. Continued monitoring of ROE trends is essential to assess the company's financial performance and value creation for shareholders.
Peer comparison
Jun 30, 2024