Williams-Sonoma (De)(Wsm) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for WSM compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2022', WSM's return on equity was 67.7%, measuring profitability for shareholders. Industry average for Home Furnishings in '2022' stood at -0.3%.
• In '2023', WSM's return on equity was 67.0%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2023' stood at 1.3%. Industry average increased by 1.6% compared to previous year.
• In '2024', WSM's return on equity was 49.6%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2024' stood at -16.5%. Industry average declined by 17.8% from previous year.
• In '2025', WSM's return on equity was 52.7%, measuring profitability for shareholders. The increase since '2024' reflects strengthening financial performance. Industry average for Home Furnishings in '2025' stood at 17.6%. Industry average increased by 34.1% compared to previous year.
Overall, WSM's return on equity has consistently declined during the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.