Cognex Corporation (CGNX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	113,234	215,525	279,881	176,186	203,865
Total stockholders’ equity	US$ in thousands	1,504,750	1,438,390	1,430,090	1,262,200	1,355,710
ROE		7.53%	14.98%	19.57%	13.96%	15.04%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $113,234K ÷ $1,504,750K
= 7.53%

Cognex Corp.'s return on equity (ROE) has exhibited fluctuations over the past five years. The ROE decreased from 15.04% in 2019 to 13.96% in 2020, before increasing to 19.57% in 2021. However, there was a subsequent decline to 14.98% in 2022 and further reduction to 7.53% in 2023.

The declining trend in ROE from 2021 to 2023 indicates that the company's ability to generate profit from shareholders' equity has weakened. This could be a cause for concern as lower ROE may imply inefficiency in the utilization of equity capital to generate earnings.

It's essential for investors and stakeholders to delve deeper into the company's financial performance and operational efficiency to understand the reasons behind the fluctuating ROE. Factors such as changes in profitability, leverage, asset turnover, or equity structure could be influencing the ROE trend.

Further analysis and comparison with industry peers or historical performance may provide more insights into Cognex Corp.'s financial health and future prospects.