Simply Good Foods Co (SMPL)

Return on equity (ROE)

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Net income	US$ in thousands	139,309	133,575	108,574	40,880	65,638
Total stockholders’ equity	US$ in thousands	1,727,490	1,571,100	1,438,660	1,188,800	1,139,330
ROE		8.06%	8.50%	7.55%	3.44%	5.76%

August 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $139,309K ÷ $1,727,490K
= 8.06%

Simply Good Foods Co's return on equity (ROE) has displayed variability over the past five years. The ROE stood at 8.06% as of August 31, 2024, a slight decrease from the previous year's 8.50%. Despite this decline, the current ROE remains relatively stable compared to the levels seen in 2022 and 2021, which were 7.55% and 3.44%, respectively. The company experienced a notable improvement in ROE in 2023 compared to 2022.

It is worth noting that Simply Good Foods Co's ROE in 2024 is higher than the figure reported in 2020 (5.76%). This indicates a positive trend in the company's ability to generate profit from shareholder equity over the past five years. However, the current ROE of 8.06% suggests that there may still be room for improvement in maximizing returns for equity investors.

Overall, Simply Good Foods Co's ROE performance demonstrates a mix of fluctuations and improvements over the years, highlighting the company's financial efficiency and effectiveness in utilizing shareholders' equity to generate profits.