ScanSource Inc (SCSC)
Return on equity (ROE)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 71,548 | 77,060 | 89,809 | 88,798 | 45,389 |
| Total stockholders’ equity | US$ in thousands | 906,409 | 924,255 | 905,298 | 806,528 | 731,191 |
| ROE | 7.89% | 8.34% | 9.92% | 11.01% | 6.21% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $71,548K ÷ $906,409K
= 7.89%
The analysis of ScanSource Inc.'s return on equity (ROE) over the period from June 30, 2021, to June 30, 2025, reveals fluctuations in profitability relative to shareholders’ equity. In 2021, the company's ROE stood at 6.21%, indicating a relatively modest efficiency in generating profits from shareholders' equity. By 2022, the ROE experienced a significant increase to 11.01%, suggesting an improvement in profitability or more effective utilization of equity capital during that year.
Following this peak, the ROE declined slightly to 9.92% in 2023, which may reflect some degree of operational or market challenges affecting profitability or possibly an increase in shareholders' equity without a proportionate increase in net income. The downward trend continued into 2024 with the ROE decreasing to 8.34%, and further modestly decreasing to 7.89% in 2025. This gradual decline suggests a potential reduction in net income margins or a rise in equity base that outpaces net income growth.
Overall, while the ROE experienced substantial growth from 2021 to 2022, indicating improved profitability and efficiency during that period, subsequent years show a declining trend. This pattern may imply a stabilization phase after a period of expansion or profitability gains, or possibly the impact of external factors such as market conditions or internal operational adjustments. The current ROE levels indicate that the company's ability to generate returns from equity has diminished somewhat from its 2022 high but remains within a moderate range, necessitating further analysis of underlying causes for these variations.
Peer comparison
Jun 30, 2025