Advanced Drainage Systems Inc (WMS)
Return on equity (ROE)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 509,915 | 507,086 | 271,331 | 224,230 | -193,174 |
| Total stockholders’ equity | US$ in thousands | 1,153,310 | 824,147 | 893,039 | 819,784 | 525,723 |
| ROE | 44.21% | 61.53% | 30.38% | 27.35% | -36.74% |
March 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $509,915K ÷ $1,153,310K
= 44.21%
Advanced Drainage Systems Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In Mar 31, 2024, the ROE stood at 44.21%, indicating a decrease from the previous year's 61.53%. Despite this dip, the current ROE remains relatively high compared to earlier years such as Mar 31, 2020, when the company reported a negative -36.74% ROE.
The company's ROE experienced a notable improvement in Mar 31, 2023, reaching 61.53%, which marked a substantial increase from the preceding year (30.38% in Mar 31, 2022). This surge reflected positively on the company's profitability and efficiency in generating returns for its shareholders.
It is worth noting that in Mar 31, 2020, the company reported a negative ROE of -36.74%, indicating a period of financial distress or inefficiency in capital utilization. However, the subsequent years demonstrate a commendable turnaround as Advanced Drainage Systems Inc managed to significantly enhance its ROE performance.
Overall, the analysis suggests that Advanced Drainage Systems Inc's ROE has shown volatility over the past five years, with both positive and negative trends observed. Consequently, investors and stakeholders should closely monitor the company's future financial performance to assess its ability to sustain or improve ROE levels.