Vestis Corporation (VSTS)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 191,956 | 213,158 | -12,819 | 4,333 | |||
| Total stockholders’ equity | US$ in thousands | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| ROE | 21.23% | 24.30% | -1.40% | 0.48% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $191,956K ÷ $904,158K
= 21.23%
To analyze Vestis Corporation's return on equity (ROE) based on the provided data, we can observe the trend over the past few quarters.
1. In December 2022, the ROE was 21.23%, indicating that for every dollar of equity, the company generated a return of 21.23%.
2. The ROE increased to 24.30% in September 2023, showing an improvement in the company's ability to generate profit from shareholder equity.
3. However, in June 2023, the ROE dropped to -1.40%, which suggests that the company experienced a negative return on equity during that period. This negative ROE raises concerns about the company's profitability and efficiency in utilizing shareholder funds.
4. By March 2023, the ROE improved to 0.48%, indicating a modest return on equity, but still below the levels seen in the earlier quarters.
Overall, the fluctuating ROE values over the quarters indicate variability in the company's profitability and efficiency in generating returns for its shareholders. It is essential for Vestis Corporation to analyze the factors contributing to these fluctuations and take necessary steps to improve its return on equity consistently over time.
Peer comparison
Dec 31, 2023