WD-40 Company (WDFC)
Return on equity (ROE)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 69,644 | 65,993 | 67,329 | 70,229 | 60,710 |
| Total stockholders’ equity | US$ in thousands | 230,526 | 210,178 | 188,624 | 200,382 | 160,313 |
| ROE | 30.21% | 31.40% | 35.69% | 35.05% | 37.87% |
August 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $69,644K ÷ $230,526K
= 30.21%
WD-40 Company's return on equity (ROE) has exhibited a declining trend over the past five years. The ROE decreased from 37.87% in 2020 to 30.21% in 2024. This suggests that the company's ability to generate profits from shareholder equity has gradually weakened. A consistently high ROE indicates efficient utilization of shareholders' funds, while a declining ROE may signify deteriorating profitability or inefficient management of the company's assets and liabilities. It is imperative for WD-40 Company to assess the underlying factors contributing to the decreasing ROE in order to enhance shareholder value in the long run.
Peer comparison
Aug 31, 2024