QuinStreet Inc (QNST)

Return on equity (ROE)

		Jun 30, 2024	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
Net income (ttm)	US$ in thousands	-31,331	-85,058	-78,489	-74,914	-68,866	-17,918	-15,209	-12,858	-5,248	3,066	5,873	11,967	23,555	21,686	30,568	31,651	18,102	20,016	7,038	58,315
Total stockholders’ equity	US$ in thousands	216,825	214,964	215,253	222,336	229,801	284,527	279,796	283,256	286,000	301,463	298,645	299,695	295,148	288,567	279,406	273,288	255,944	249,207	233,871	228,091
ROE		-14.45%	-39.57%	-36.46%	-33.69%	-29.97%	-6.30%	-5.44%	-4.54%	-1.83%	1.02%	1.97%	3.99%	7.98%	7.52%	10.94%	11.58%	7.07%	8.03%	3.01%	25.57%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-31,331K ÷ $216,825K
= -14.45%

QuinStreet Inc's return on equity (ROE) has exhibited significant fluctuations over the past several quarters. The ROE has been negative in recent quarters, with values ranging from -14.45% to -39.57%. This indicates that the company's net income has not been sufficient to generate positive returns for shareholders during these periods.

The decreasing trend in ROE from 2019 to 2020, where the ROE dropped from 25.57% to 3.01%, suggests a decline in the company's efficiency in utilizing shareholder equity to generate profits. The subsequent improvement in ROE in 2021 and early 2022, reaching values of 7.98% and 10.94%, indicates a partial recovery in the company's profitability and efficiency.

However, the ROE declined again in mid to late 2022, with values below 5%. This downward trend continued into 2023, hitting even lower levels of -36.46% and -33.69%. The negative ROE values indicate that the company might be facing challenges in generating profits relative to shareholder equity during these periods.

Overall, the volatile nature of QuinStreet Inc's ROE suggests fluctuations in the company's profitability and efficiency over the analyzed periods. It would be essential for stakeholders to delve deeper into the company's financial performance drivers to understand the underlying reasons for the fluctuations in ROE and to assess the company's financial health more thoroughly.