Simulations Plus Inc (SLP)

Return on equity (ROE)

		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	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	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	8,583	7,862
Total stockholders’ equity	US$ in thousands	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	37,681	36,168
ROE		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%	22.78%	21.74%

February 29, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $10,516K ÷ $177,038K
= 5.94%

Simulations Plus Inc's return on equity (ROE) has shown fluctuation over the past several periods. The ROE has ranged from a low of 5.86% to a high of 23.23%. The ROE has generally remained within a narrow range, with the highest values observed in the periods ending in May 2020, February 2020, and August 2019. These periods may indicate strong profitability and efficiency in utilizing shareholders' equity to generate earnings. However, the ROE has decreased in recent periods, suggesting a potential decline in profitability relative to the level seen in prior years. It would be beneficial to further investigate the underlying reasons for these fluctuations to assess the long-term sustainability of the company's profitability and ability to create value for shareholders.