Woodward Inc (WWD)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 232,368 | 171,698 | 208,649 | 240,395 | 259,602 |
| Total stockholders’ equity | US$ in thousands | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 | 1,726,740 |
| ROE | 11.22% | 9.03% | 9.42% | 12.06% | 15.03% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $232,368K ÷ $2,070,990K
= 11.22%
Woodward Inc's return on equity (ROE) has shown some fluctuations over the past five years. In 2023, the ROE stood at 11.22%, indicating a moderate increase from the previous year's 9.03%. However, it is noteworthy that the ROE has declined from 15.03% in 2019 to the current level, suggesting a downward trend in the company's ability to generate profits from shareholders' equity. This decline may raise concerns about the company's efficiency in utilizing its equity to generate returns for investors. Further analysis of the company's financial performance and management strategies may be required to understand the factors contributing to this trend.