Shoe Carnival Inc (SCVL)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 73,766 | 74,621 | 70,899 | 70,187 | 74,762 | 78,683 | 82,604 | 77,269 | 71,934 | 74,103 | 76,272 | 92,398 | 108,524 | 115,823 | 123,122 | 117,367 | 105,306 | 96,988 | 114,915 | 134,854 |
| Total stockholders’ equity | US$ in thousands | 648,996 | 635,658 | 618,495 | 597,804 | 583,389 | 583,389 | 569,906 | 569,906 | 555,519 | 555,519 | 537,680 | 537,680 | 525,568 | 525,568 | 505,585 | 505,585 | 483,632 | 483,632 | 455,714 | 452,533 |
| ROE | 11.37% | 11.74% | 11.46% | 11.74% | 12.82% | 13.49% | 14.49% | 13.56% | 12.95% | 13.34% | 14.19% | 17.18% | 20.65% | 22.04% | 24.35% | 23.21% | 21.77% | 20.05% | 25.22% | 29.80% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $73,766K ÷ $648,996K
= 11.37%
Shoe Carnival Inc's return on equity (ROE) has shown a gradual decline over the analyzed period from 29.80% as of January 31, 2022, to 11.37% as of January 31, 2025. This decreasing trend in ROE indicates that the company's ability to generate profits from shareholders' equity has been diminishing over time.
The ROE of 29.80% in January 2022 was relatively high, reflecting efficient utilization of equity to generate earnings. However, the subsequent quarters saw a consistent decrease in ROE, with occasional fluctuations, ultimately reaching 11.37% by January 2025.
This declining trend in ROE could be attributed to various factors such as declining profitability, inefficient asset utilization, high debt levels, or shareholder dilution. It suggests that the company may be facing challenges in sustaining or improving its profitability relative to the equity invested by shareholders.
Investors and stakeholders may view this downward trend in ROE as a cause for concern, as it indicates a weakening performance in terms of generating returns on the shareholders' investments. Further analysis of the company's financial and operational performance would be essential to identify the specific reasons behind this decreasing ROE and to determine potential strategies for improvement.
Peer comparison
Jan 31, 2025