Signet Jewelers Ltd (SIG)
Return on equity (ROE)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 810,400 | 376,700 | 769,900 | -15,200 | 105,500 |
| Total stockholders’ equity | US$ in thousands | 2,166,500 | 1,578,600 | 1,564,000 | 1,190,300 | 1,222,600 |
| ROE | 37.41% | 23.86% | 49.23% | -1.28% | 8.63% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $810,400K ÷ $2,166,500K
= 37.41%
Signet Jewelers Ltd's return on equity (ROE) has been fluctuating over the past five years. In fiscal year 2024, the ROE stood at 37.41%, displaying a significant increase from the previous year's ROE of 23.86%. This indicates that the company generated $0.3741 in net income for every dollar of shareholder equity in 2024, reflecting improved profitability and efficiency in managing its assets.
Comparing the current ROE with that of fiscal year 2020, where the ROE was 8.63%, there has been a notable improvement in the company's performance in generating returns for its shareholders. However, it is important to note that in fiscal year 2021, Signet Jewelers Ltd experienced a negative ROE of -1.28%, which indicates that the company's net income was insufficient to cover the shareholder's equity.
Overall, Signet Jewelers Ltd has shown a mix of positive and negative ROE figures in recent years, with a considerable improvement in fiscal year 2024. This suggests that the company has made strides in enhancing its profitability and utilizing its shareholders' equity more effectively to generate returns.