Advanced Drainage Systems Inc (WMS)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 450,172 | 509,915 | 507,086 | 271,331 | 224,230 |
| Total stockholders’ equity | US$ in thousands | 92,652 | 1,261,900 | 977,367 | 1,088,420 | 1,049,700 |
| ROE | 485.87% | 40.41% | 51.88% | 24.93% | 21.36% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $450,172K ÷ $92,652K
= 485.87%
The return on equity (ROE) of Advanced Drainage Systems Inc has shown a positive trend over the years, indicating the company's ability to generate profits from shareholders' equity.
In March 2021, the ROE was 21.36%, which increased to 24.93% by March 2022, reflecting a steady improvement in profitability. The ROE experienced a significant surge to 51.88% by March 2023, suggesting a substantial increase in the company's efficiency in utilizing equity to generate earnings.
Although there was a slight decline to 40.41% in March 2024, the ROE remained at a relatively high level, indicating continued profitability and performance. The most notable change occurred in March 2025, with an exceptionally high ROE of 485.87%, which could be the result of specific events or financial maneuvers that significantly impacted the ratio.
Overall, Advanced Drainage Systems Inc has demonstrated a strong ability to generate returns for its shareholders, with fluctuations in ROE potentially reflecting changes in the company's financial structure, profitability, or strategic decisions. It is important to closely monitor the trend and underlying factors influencing ROE to assess the company's financial health and performance effectively.