Simulations Plus Inc (SLP)

Return on equity (ROE)

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Net income (ttm)	US$ in thousands	9,954	9,645	10,516	10,661	9,961	10,388	10,467	10,702	12,483	11,827	11,527	10,329	9,782	11,665	10,814	9,753	9,332	9,203	9,156	9,105
Total stockholders’ equity	US$ in thousands	182,431	180,859	177,038	172,341	170,029	169,390	164,593	180,122	178,248	177,559	172,576	168,456	165,782	165,398	161,497	158,031	156,035	46,587	40,862	39,187
ROE		5.46%	5.33%	5.94%	6.19%	5.86%	6.13%	6.36%	5.94%	7.00%	6.66%	6.68%	6.13%	5.90%	7.05%	6.70%	6.17%	5.98%	19.75%	22.41%	23.23%

August 31, 2024 calculation

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

The return on equity (ROE) of Simulations Plus Inc has shown fluctuation over the past few quarters. The ROE was 5.46% in August 2024, which decreased slightly from the 5.94% in February 2024. The company's ROE has generally been in the range of 5-7% over the recent quarters, indicating moderate profitability in relation to shareholders' equity.

However, there were significant variations in ROE in previous periods, such as the notably higher ROE of 19.75% in August 2020, 22.41% in May 2020, and 23.23% in February 2020. These higher ROE figures suggest that the company was more profitable in those periods, potentially due to higher earnings generated from shareholders' equity.

Overall, the recent ROE of Simulations Plus Inc reflects a moderate level of profitability relative to shareholders' equity, with some variability observed in the historical data. Investors should consider the company's ability to maintain or improve its ROE in the future to assess its financial performance and efficiency in generating profits for shareholders.