Vestis Corporation (VSTS)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,970 | 213,158 | 141,679 | 74,270 | 111,647 |
| Total stockholders’ equity | US$ in thousands | 903,051 | 877,360 | 2,335,810 | 2,331,980 | — |
| ROE | 2.32% | 24.30% | 6.07% | 3.18% | — |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $20,970K ÷ $903,051K
= 2.32%
Vestis Corporation's return on equity (ROE) has fluctuated significantly over the past five years, ranging from a high of 24.30% in 2023 to a low of 2.32% in 2024. This signifies a lack of consistency in generating profit relative to the shareholders' equity invested in the company. The sharp decline in ROE from 2023 to 2024 indicates a potential decrease in the company's profitability and efficiency in utilizing equity to generate returns. It is essential for Vestis Corporation to analyze the factors contributing to these variations and implement strategic measures to improve the ROE and enhance shareholder value in the future.
Peer comparison
Sep 30, 2024