ScanSource Inc (SCSC)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 77,060 | 89,809 | 88,798 | 10,795 | -192,654 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 905,298 | 806,528 | 731,191 | 678,246 |
| ROE | 8.34% | 9.92% | 11.01% | 1.48% | -28.40% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $77,060K ÷ $924,255K
= 8.34%
ScanSource Inc's return on equity (ROE) has experienced fluctuations over the past five years. The ROE was 8.34% in 2024, compared to 9.92% in 2023 and 11.01% in 2022. This downward trend indicates a decreasing ability to generate profits from shareholders' equity during these years. The significant drop in ROE from 2022 to 2021, where it was only 1.48%, indicates a considerable decline in profitability relative to the shareholders' investment during that period.
However, the most notable change occurred in 2020 when ScanSource Inc reported a negative ROE of -28.40%. This sharp decline suggests that the company's net income was insufficient to cover the cost of equity, resulting in a loss on shareholders' investments.
Overall, ScanSource Inc's ROE trend indicates inconsistent profitability performance and a need for the company to enhance its efficiency in generating returns for its shareholders in the future.
Peer comparison
Jun 30, 2024