RPM International Inc (RPM)
Return on equity (ROE)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 688,688 | 643,541 | 652,706 | 615,007 | 588,397 | 559,146 | 524,921 | 510,760 | 478,691 | 526,336 | 532,381 | 525,912 | 491,481 | 448,623 | 453,846 | 456,630 | 502,643 | 455,810 | 429,421 | 378,792 |
| Total stockholders’ equity | US$ in thousands | 2,885,360 | 2,674,280 | 2,716,030 | 2,649,430 | 2,510,880 | 2,346,810 | 2,360,550 | 2,281,140 | 2,140,840 | 2,053,160 | 2,090,460 | 1,996,060 | 1,982,430 | 1,835,050 | 1,836,110 | 1,788,580 | 1,741,060 | 1,547,480 | 1,547,740 | 1,449,590 |
| ROE | 23.87% | 24.06% | 24.03% | 23.21% | 23.43% | 23.83% | 22.24% | 22.39% | 22.36% | 25.64% | 25.47% | 26.35% | 24.79% | 24.45% | 24.72% | 25.53% | 28.87% | 29.45% | 27.75% | 26.13% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $688,688K ÷ $2,885,360K
= 23.87%
The analysis of RPM International Inc.'s return on equity (ROE) over the observed period indicates an overall moderate level of profitability and equity utilization. At the beginning of the period, on August 31, 2020, the ROE stood at approximately 26.13%, reflecting a relatively strong ability to generate profits from shareholders' equity. This figure increased, reaching a peak of around 29.45% on February 28, 2021, suggesting improved profitability during this early phase, potentially driven by favorable market conditions, operational efficiency, or strategic initiatives.
Subsequent quarters showed some fluctuations but generally maintained a level close to the 24-26% range. Notably, there was a decline observed after the February 2021 peak, with the ROE decreasing to approximately 25.53% by August 31, 2021, and further to about 24.45% by February 28, 2022. These reductions may reflect increased equity base, pressure on profit margins, or strategic investments that temporarily impacted profitability metrics.
From late 2022 onward, the ROE exhibited relatively stable behavior, oscillating between roughly 22.24% and 26.35%. The lowest point within this range was recorded on November 30, 2023, at approximately 22.24%. A slight upward trend resumed towards the end of the period, reaching about 24.06% on February 28, 2025, suggesting some recovery or stabilization in profitability and efficient use of equity capital.
Overall, the ROE figures demonstrate that RPM International Inc. has maintained a consistent capacity to generate returns on shareholders' equity within a moderate range, with short-term fluctuations likely driven by operational, market, or strategic factors. The trend indicates resilience, although the declining aspect post-2021 warrants attention to underlying profit dynamics and capital efficiency to sustain or improve future ROE levels.
Peer comparison
May 31, 2025