Bio-Techne Corp (TECH)

Return on equity (ROE)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	73,400	168,105	285,263	272,051	140,410
Total stockholders’ equity	US$ in thousands	1,918,810	2,068,850	1,966,520	1,701,010	1,571,230
ROE		3.83%	8.13%	14.51%	15.99%	8.94%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $73,400K ÷ $1,918,810K
= 3.83%

The analysis of Bio-Techne Corp’s return on equity (ROE) over the specified period reveals a pattern characterized by significant fluctuations. As of June 30, 2021, the ROE stood at 8.94%, indicating a relatively modest level of profitability relative to shareholders' equity. The following year, June 30, 2022, saw a substantial increase to 15.99%, nearly doubling the previous year's figure. This suggests that the company experienced improved efficiency in generating profit from its equity base during this period, potentially driven by higher net income, better operational performance, or increased leverage.

However, the subsequent fiscal year, ending June 30, 2023, experienced a slight decline to 14.51%. Despite this decrease, the ROE remained relatively high, reflecting continued profitability but indicating some moderation in the rate of return compared to the previous year. The downward trend continued notably in the 2024 fiscal year, with ROE decreasing sharply to 8.13%, nearly halving from the previous year’s figure. This significant drop could be attributable to various factors such as increased equity base without proportional profit growth, declining net income, or other operational challenges.

Looking further ahead, the ROE for June 30, 2025, declined further to 3.83%. This substantial decrease signifies that the company’s ability to generate profits from shareholders’ equity has weakened considerably. Factors contributing to this persistent decline could include reduced profitability, increased equity without corresponding income growth, or other financial and operational stressors.

Overall, the trend in Bio-Techne Corp’s ROE indicates a period of robust improvement followed by a pronounced decline. While the company experienced notable growth in ROE during 2022, recent years have seen a considerable reduction, approaching levels that may suggest declining operational efficiency or profitability concerns. Continuous monitoring of underlying financial factors and strategic initiatives would be necessary to assess whether this downward trend might reverse or stabilize in subsequent periods.