Williams-Sonoma Inc (WSM)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,151,082 | 1,094,803 | 1,200,289 | 1,211,829 | 1,183,448 | 1,030,516 | 877,584 | 796,830 | 914,538 | 1,068,024 | 1,118,240 | 1,213,432 | 1,125,514 | 1,024,634 | 1,027,024 | 1,178,242 | 1,314,108 | 1,309,519 | 1,301,476 | 1,144,605 |
| Total stockholders’ equity | US$ in thousands | 2,142,420 | 1,906,610 | 2,250,230 | 2,209,560 | 2,127,860 | 2,127,860 | 1,813,230 | 1,813,230 | 1,620,960 | 1,620,960 | 1,466,820 | 1,701,050 | 1,701,050 | 1,412,930 | 1,412,930 | 1,278,280 | 1,309,740 | 1,309,740 | 1,664,210 | 1,664,210 |
| ROE | 53.73% | 57.42% | 53.34% | 54.84% | 55.62% | 48.43% | 48.40% | 43.95% | 56.42% | 65.89% | 76.24% | 71.33% | 66.17% | 72.52% | 72.69% | 92.17% | 100.33% | 99.98% | 78.20% | 68.78% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,151,082K ÷ $2,142,420K
= 53.73%
Williams-Sonoma Inc's return on equity (ROE) has shown fluctuations over the period analyzed. It started at 68.78% in January 2022, increasing to 100.33% by May 2022. Subsequently, the ROE decreased to 43.95% by October 2023 before slightly recovering to 57.42% by October 2024. The ROE was recorded at 53.73% in January 2025.
The variation in ROE reflects changes in how efficiently Williams-Sonoma Inc is generating profits from its equity. A higher ROE indicates that the company is utilizing its shareholders' equity effectively to generate profits, while a lower ROE could suggest inefficiencies in the utilization of equity.
It is essential to investigate the reasons behind these fluctuations in ROE to better understand the company's financial performance and future prospects. Factors such as changes in net income, shareholder equity, or financial leverage may have influenced Williams-Sonoma Inc's ROE over the analyzed period.