Advanced Drainage Systems Inc (WMS)
Return on equity (ROE)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | -193,174 | -194,469 | -201,945 | -180,864 |
| Total stockholders’ equity | US$ in thousands | 1,153,310 | 1,078,560 | 1,029,410 | 944,672 | 824,147 | 940,998 | 1,038,410 | 989,996 | 893,039 | 799,399 | 695,219 | 791,779 | 819,784 | 772,205 | 696,520 | 602,306 | 525,723 | 531,422 | 498,178 | 199,126 |
| ROE | 44.21% | 46.45% | 46.37% | 52.25% | 61.53% | 49.68% | 44.22% | 38.64% | 30.38% | 30.62% | 32.35% | 29.02% | 27.35% | 26.78% | 25.31% | 17.21% | -36.74% | -36.59% | -40.54% | -90.83% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $509,915K ÷ $1,153,310K
= 44.21%
The return on equity (ROE) of Advanced Drainage Systems Inc has varied over the past few quarters. ROE is a key financial ratio that measures a company's ability to generate profit from shareholder's equity.
Looking at the data provided, we can see that the ROE has fluctuated significantly over the last few quarters. In the most recent quarter, the ROE was 44.21%, showing a strong return on equity for the company. This indicates that for every dollar of shareholder equity invested in the company, it generated a profit of 44.21 cents.
The trend in the ROE seems to have been generally positive until the first quarter of 2020 when it dropped significantly to -36.74%, indicating a period of negative return on equity. This negative trend continued into the following quarters with ROE values continuing to decline, reaching -90.83% at the end of 2019.
Overall, the analysis of Advanced Drainage Systems Inc's ROE indicates that the company has experienced fluctuations in its profitability and efficiency in generating returns for its shareholders. It is important for investors and stakeholders to monitor these fluctuations to understand the company's financial performance and strategic decisions.