RPM International Inc (RPM)
Return on equity (ROE)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 688,688 | 588,397 | 478,691 | 491,481 | 502,643 |
| Total stockholders’ equity | US$ in thousands | 2,885,360 | 2,510,880 | 2,140,840 | 1,982,430 | 1,741,060 |
| ROE | 23.87% | 23.43% | 22.36% | 24.79% | 28.87% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $688,688K ÷ $2,885,360K
= 23.87%
The analysis of RPM International Inc.'s return on equity (ROE) over the specified period reveals a pattern of initial decline followed by stabilization and slight improvement. On May 31, 2021, the company's ROE stood at 28.87%, indicating a strong efficiency in generating profit from shareholders' equity. By May 31, 2022, the ROE decreased to 24.79%, reflecting a reduction in profitability or increased equity base relative to net income. The downward trend continued into May 31, 2023, with the ROE further declining to 22.36%, which could suggest challenges in maintaining previous profitability levels or changes in operational or financial leverage.
However, from May 31, 2023, there is a modest recovery observed, with the ROE increasing to 23.43% by May 31, 2024, and further marginally rising to 23.87% by May 31, 2025. This stabilization and slight upward movement suggest that RPM may have begun implementing strategies to improve profitability relative to shareholders' equity or has benefited from favorable operational or market conditions.
Overall, the trend indicates a decrease from the peak ROE observed in 2021 to a lower but relatively stable level in subsequent years, with signs of a modest recovery. The ROE, although lower than its 2021 peak, remains above 22%, which is generally considered healthy and indicates a consistent ability to generate returns on shareholders' equity despite past declines.
Peer comparison
May 31, 2025