Woodward Inc (WWD)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 372,971 | 232,368 | 171,698 | 208,649 | 240,395 |
| Total stockholders’ equity | US$ in thousands | 2,176,420 | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 |
| ROE | 17.14% | 11.22% | 9.03% | 9.42% | 12.06% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $372,971K ÷ $2,176,420K
= 17.14%
Woodward Inc's return on equity (ROE) has shown a mixed performance over the past five years. In the latest fiscal year ending September 30, 2024, the company's ROE stood at 17.14%, representing a notable increase compared to the previous year. This improvement suggests that the company has been able to generate a higher level of net income relative to its shareholders' equity, thereby enhancing overall profitability.
Looking back at the prior years, Woodward's ROE fluctuated, with a peak of 12.06% in fiscal year 2020. The subsequent decline in FY2021 and FY2022 to 9.42% and 9.03%, respectively, may indicate challenges in maintaining or growing profitability during those periods. However, the recent rebound to 17.14% in FY2024 is a positive sign of potential strategic initiatives or operational improvements that have positively impacted the company's financial performance.
Overall, Woodward Inc's ROE trend reflects varying levels of effectiveness in utilizing shareholder equity to generate profits over the years. It would be worth further investigation to understand the specific factors driving these fluctuations and to assess the company's future sustainability and growth prospects.