Advanced Drainage Systems Inc (WMS)
Return on equity (ROE)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 450,172 | 467,837 | 492,245 | 497,665 | 509,915 | 500,986 | 477,387 | 493,592 | 507,086 | 467,500 | 459,138 | 382,490 | 271,331 | 244,778 | 224,874 | 229,751 | 224,230 | 206,781 | 176,295 | 103,648 |
| Total stockholders’ equity | US$ in thousands | 92,652 | 1,546,280 | 1,474,690 | 1,366,880 | 1,261,900 | 1,200,250 | 1,162,760 | 1,093,070 | 977,367 | 1,098,130 | 1,198,340 | 1,178,820 | 1,088,420 | 1,005,140 | 916,737 | 1,011,370 | 1,049,700 | 1,013,740 | 942,613 | 852,230 |
| ROE | 485.87% | 30.26% | 33.38% | 36.41% | 40.41% | 41.74% | 41.06% | 45.16% | 51.88% | 42.57% | 38.31% | 32.45% | 24.93% | 24.35% | 24.53% | 22.72% | 21.36% | 20.40% | 18.70% | 12.16% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $450,172K ÷ $92,652K
= 485.87%
Advanced Drainage Systems Inc's return on equity (ROE) has shown a positive trend over the past few years, indicating the company's increasing efficiency in generating profits from shareholders' equity. The ROE has steadily improved from 12.16% in June 2020 to a remarkable 485.87% in March 2025.
This significant increase in ROE suggests that the company has been effectively utilizing its equity capital to generate higher profits for shareholders. However, the sudden spike in ROE in March 2025 to 485.87% may raise some questions regarding the quality or sustainability of earnings, as such a high return may be influenced by one-time events or accounting irregularities.
Overall, Advanced Drainage Systems Inc's increasing ROE is a positive indicator of the company's improving profitability and efficiency in generating returns for its shareholders. It would be important for stakeholders to further investigate the drivers behind the significant increase in ROE in the latest period to ensure its sustainability.