Cognex Corporation (CGNX)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 106,171 89,054 78,379 99,641 113,234 157,316 172,380 173,807 215,525 213,749 258,669 277,366 279,881 295,691 304,297 225,557 176,186 187,168 141,347 191,238
Total stockholders’ equity US$ in thousands 1,517,500 1,567,030 1,506,730 1,489,190 1,504,750 1,488,600 1,480,460 1,446,330 1,438,390 1,389,220 1,389,980 1,358,740 1,430,090 1,492,960 1,429,450 1,357,000 1,262,200 1,505,830 1,376,480 1,327,490
ROE 7.00% 5.68% 5.20% 6.69% 7.53% 10.57% 11.64% 12.02% 14.98% 15.39% 18.61% 20.41% 19.57% 19.81% 21.29% 16.62% 13.96% 12.43% 10.27% 14.41%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $106,171K ÷ $1,517,500K
= 7.00%

The return on equity (ROE) of Cognex Corporation has shown some fluctuations over the past few years. From March 31, 2020, to June 30, 2021, the ROE steadily increased from 14.41% to 21.29%, indicating improved profitability in generating returns for the shareholders.

However, from September 30, 2021, to December 31, 2024, the ROE started declining gradually, reaching 7.00% by the end of December 31, 2024. This downward trend suggests that the company's ability to generate profits from shareholders' equity has weakened over time.

The variations in ROE may be influenced by factors such as changes in profitability, debt levels, asset utilization, and shareholder equity. It is essential for stakeholders to closely monitor these trends to assess the company's financial performance and sustainability in creating value for the shareholders.