Spire Inc (SR)

Return on equity (ROE)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	217,500	220,800	271,700	88,600	184,600
Total stockholders’ equity	US$ in thousands	2,917,300	2,818,500	2,658,200	2,522,300	2,543,000
ROE		7.46%	7.83%	10.22%	3.51%	7.26%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $217,500K ÷ $2,917,300K
= 7.46%

To analyze Spire Inc.'s return on equity (ROE) for the five-year period ending September 30, 2023, we can observe a fluctuating trend. In 2023, the ROE stands at 6.90%, which is a slight decrease from the previous year's 7.26%. This decline may raise concerns about the company's ability to generate profits from shareholders' equity.

Looking back at the three-year trend, we see that the ROE was highest in 2021 at 9.61%, indicating a strong performance in utilizing shareholders' equity to generate profits. However, there was a notable drop in 2022 to 7.26%, followed by a further decrease in 2023.

The ROE of 2.92% in 2020 was significantly lower than the surrounding years, suggesting a period of diminished profitability relative to shareholders' equity. The following year's ROE recovered to 7.03%, indicating a return to a more favorable level of profitability.

Overall, the fluctuating trend in ROE over the past five years signals varying levels of efficiency in utilizing shareholder investments to generate profits. This variability could be attributed to changes in the company's financial structure, profitability, or both, warranting a closer examination of the underlying factors influencing Spire Inc.'s return on equity.