Simply Good Foods Co (SMPL)

Return on equity (ROE)

		Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 25, 2019
Net income (ttm)	US$ in thousands	140,757	133,276	133,575	127,060	130,463	123,282	108,574	96,693	63,754	19,079	40,880	-16,656	25,561	100,076	65,638	62,697	20,444	-15,135	-8,393	45,544
Total stockholders’ equity	US$ in thousands	1,647,480	1,607,180	1,571,100	1,530,820	1,491,920	1,463,360	1,438,660	1,437,320	1,401,050	1,209,610	1,188,800	1,168,410	1,160,140	1,183,310	1,139,330	1,173,730	1,123,410	1,072,410	712,868	753,732
ROE		8.54%	8.29%	8.50%	8.30%	8.74%	8.42%	7.55%	6.73%	4.55%	1.58%	3.44%	-1.43%	2.20%	8.46%	5.76%	5.34%	1.82%	-1.41%	-1.18%	6.04%

February 24, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $140,757K ÷ $1,647,480K
= 8.54%

The return on equity (ROE) of Simply Good Foods Co has shown fluctuations over the past several quarters. From May 2019 to Aug 2020, the ROE fluctuated in a range of -1.41% to 8.46%. The ROE increased to its highest level of 8.74% in Feb 2023 before slightly decreasing in the following quarters.

Overall, the ROE has generally been positive, indicating that Simply Good Foods Co has been generating a return on shareholder equity. The company experienced a significant improvement in ROE from May 2021 to Feb 2023. However, there was a slight decrease in ROE in the most recent quarter compared to the peak in Feb 2023.

The ROE trend suggests that Simply Good Foods Co has been relatively effective in utilizing shareholder equity to generate profits, but continued monitoring is recommended to assess the sustainability of their performance.