Simply Good Foods Co (SMPL)

Return on equity (ROE)

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Net income	US$ in thousands	133,575	108,574	40,880	65,638	-25,234
Total stockholders’ equity	US$ in thousands	1,571,100	1,438,660	1,188,800	1,139,330	712,868
ROE		8.50%	7.55%	3.44%	5.76%	-3.54%

August 26, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $133,575K ÷ $1,571,100K
= 8.50%

The return on equity (ROE) for Simply Good Foods Co has exhibited fluctuation over the past five years. In fiscal year 2023, the ROE stood at 8.50%, reflecting an improvement from the previous year's 7.55%. This indicates that the company generated 8.50% in profit for every dollar of shareholder equity, showcasing an enhanced efficiency in utilizing equity to generate profits.

The upward trend in ROE demonstrates the company's ability to effectively utilize shareholder funds to generate profit. This improvement may be attributed to factors such as increased profitability, better cost management, or an improved capital structure.

By contrast, in fiscal year 2021, the ROE was at a lower level of 3.44%, signaling a decline in the company's ability to generate profit from equity. However, there was a subsequent rebound in fiscal 2022, with the ROE climbing to 7.55%.

Overall, the fluctuation in ROE over the past five years suggests varying levels of efficiency in generating profits from shareholder equity. Investors and stakeholders should continue to monitor ROE as it provides insights into the company's ability to create value from the funds invested by shareholders.