Simulations Plus Inc (SLP)

Return on equity (ROE)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Net income	US$ in thousands	9,954	9,961	12,483	9,782	9,332
Total stockholders’ equity	US$ in thousands	182,431	170,029	178,248	165,782	156,035
ROE		5.46%	5.86%	7.00%	5.90%	5.98%

August 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $9,954K ÷ $182,431K
= 5.46%

The return on equity (ROE) for Simulations Plus Inc has shown fluctuations over the past five years. In 2024, the ROE was 5.46%, which represents a decrease from the previous year's 5.86%. Despite the slight decline, the company's ROE remains relatively stable. Looking back over the five-year period, the ROE has ranged from 5.46% to 7.00%, indicating a consistent performance in generating profits relative to shareholders' equity. This suggests that the company has been effectively utilizing its shareholders' equity to generate returns. However, there may be opportunities for further improvement in maximizing shareholder value through more efficient use of equity capital. Overall, the trend in Simulations Plus Inc's ROE highlights the company's ability to generate satisfactory returns for its shareholders, although there may be room for enhancement in the future.