United Natural Foods Inc (UNFI)
Return on equity (ROE)
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 24,000 | 248,000 | 149,000 | -274,000 | -285,000 |
| Total stockholders’ equity | US$ in thousands | 1,743,000 | 1,791,000 | 1,515,000 | 1,145,000 | 1,507,040 |
| ROE | 1.38% | 13.85% | 9.83% | -23.93% | -18.91% |
July 29, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $24,000K ÷ $1,743,000K
= 1.38%
United Natural Foods Inc.'s return on equity (ROE) has fluctuated significantly over the past five years, reflecting the company's changing financial performance. In 2023, the ROE stands at 1.38%, showing a substantial decline from the previous year's 13.85%. This indicates a potential deterioration in the company's ability to generate profits from shareholders' equity.
The sharp decrease in ROE from 2022 to 2023 raises concerns about the company's profitability and efficient use of equity. It is essential for stakeholders to delve into the reasons behind this decline, as it could signify operational inefficiencies or challenges in managing assets and liabilities.
Comparing the 2023 ROE to the 2021 and 2020 figures, there is a visible trend of fluctuation. While the 2021 ROE of 9.83% reflects relative stability, the negative ROE in 2020 (-23.95%) signals a period of substantial financial strain and potential insolvency risk.
Given the consistent negative ROE in 2020 and 2019, it is evident that United Natural Foods Inc. experienced significant challenges, possibly related to the COVID-19 pandemic impact or internal operational issues.
In conclusion, the recent decline in ROE raises concerns about United Natural Foods Inc.'s ability to generate returns from shareholder equity. Assessing the reasons behind these fluctuations and addressing any underlying issues is crucial for the company's long-term financial health and the confidence of shareholders and investors.
Peer comparison
Jul 29, 2023