Vista Outdoor Inc (VSTO)
Return on equity (ROE)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -5,505 | -340,008 | -126,666 | -77,633 | -9,718 | 397,441 | 450,431 | 496,516 | 473,226 | 542,872 | 503,614 | 443,719 | 381,470 | 283,634 | 219,403 | 127,860 | 70,769 | 85,492 | -443,798 | -464,718 |
| Total stockholders’ equity | US$ in thousands | 1,126,300 | 1,082,900 | 1,225,740 | 1,180,000 | 1,131,790 | 1,420,650 | 1,349,450 | 1,249,310 | 1,124,400 | 1,030,320 | 935,013 | 800,679 | 736,997 | 658,728 | 574,637 | 489,505 | 442,505 | 604,950 | 588,501 | 594,949 |
| ROE | -0.49% | -31.40% | -10.33% | -6.58% | -0.86% | 27.98% | 33.38% | 39.74% | 42.09% | 52.69% | 53.86% | 55.42% | 51.76% | 43.06% | 38.18% | 26.12% | 15.99% | 14.13% | -75.41% | -78.11% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-5,505K ÷ $1,126,300K
= -0.49%
Vista Outdoor Inc's return on equity (ROE) has fluctuated significantly over the past few quarters, ranging from negative values to positive values. The ROE was particularly strong in the second half of 2021, reaching above 50%, indicating efficient utilization of shareholder equity to generate profits during that period. However, there was a notable decline in ROE in the first half of 2022, dropping to around 40%, but still remaining relatively healthy.
The trend took a negative turn in the second half of 2022 and continued into 2023, with ROE falling below 0% in some quarters, indicating that the company's ability to generate profits relative to shareholder equity has been compromised. The most drastic drop was observed in December 2023 when ROE stood at -31.40%.
It is important for Vista Outdoor Inc to identify the factors contributing to the decline in ROE and implement strategies to improve profitability and efficiency in the utilization of its equity capital moving forward.
Peer comparison
Mar 31, 2024