Calix Inc (CALX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -29,747 | 29,325 | 41,010 | 238,378 | 33,484 |
| Total stockholders’ equity | US$ in thousands | 780,940 | 718,982 | 679,567 | 568,428 | 280,325 |
| ROE | -3.81% | 4.08% | 6.03% | 41.94% | 11.94% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-29,747K ÷ $780,940K
= -3.81%
The return on equity (ROE) is a key financial ratio that indicates the profitability of a company relative to its shareholders' equity. Analyzing the ROE trend of Calix Inc from 2020 to 2024 provides valuable insights into the company's performance.
- In December 2020, Calix Inc had an ROE of 11.94%, indicating that the company generated a return of 11.94% on each unit of shareholders' equity during that period. This level of ROE reflects moderate profitability.
- By December 2021, Calix Inc significantly improved its ROE to 41.94%, indicating a substantial increase in profitability. This sharp rise in ROE suggests that the company efficiently utilized its equity to generate higher returns, potentially driven by improved operational efficiency or increased revenue.
- However, in December 2022, Calix Inc experienced a notable decline in its ROE to 6.03%, showing a significant drop in profitability compared to the previous year. This decline could be attributed to various factors such as increased expenses, lower revenue, or less effective management of assets.
- The trend continued in December 2023, with Calix Inc's ROE decreasing further to 4.08%. This continued decrease may raise concerns about the company's ability to generate returns for its shareholders and could indicate underlying issues impacting profitability.
- By December 2024, Calix Inc's ROE turned negative at -3.81%, indicating that the company incurred a loss relative to its equity during that period. A negative ROE is a concerning sign as it suggests that the company's operations are not generating sufficient returns to cover the shareholders' equity.
Overall, the analysis of Calix Inc's ROE demonstrates fluctuations in profitability over the years. While the significant increase in ROE in 2021 showcased strong performance, the subsequent declines raise questions about the company's profitability and efficiency in utilizing its equity. Investors and stakeholders would need to further investigate the factors driving these fluctuations to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2024