Cohu Inc (COHU)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 28,156 | 96,847 | 167,325 | -13,801 | -69,700 |
| Total stockholders’ equity | US$ in thousands | 950,170 | 928,841 | 882,502 | 512,288 | 483,072 |
| ROE | 2.96% | 10.43% | 18.96% | -2.69% | -14.43% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $28,156K ÷ $950,170K
= 2.96%
Cohu Inc's return on equity (ROE) has shown fluctuating trends over the past five years. In 2023, the ROE decreased to 2.96%, significantly lower than the previous year's 10.43%. This decline may signal challenges in generating profits relative to shareholders' equity in the most recent year.
Comparing to 2021, where the ROE stood at 18.96%, the current ROE in 2023 indicates a substantial drop in profitability efficiency. The negative ROE of -2.69% in 2020 suggests that the company was not utilizing shareholder funds effectively to generate profits during that period.
It is noteworthy that in 2019, Cohu Inc reported a significantly negative ROE of -14.43%, indicating a significant loss relative to shareholders' equity. However, the company has shown resilience by improving its ROE in the subsequent years, except for the latest decline in 2023.
Overall, the recent decline in ROE for Cohu Inc may raise concerns about the company's profitability and efficient use of shareholders' equity in the most recent period. Further analysis of the company's financial performance and strategies would be essential to understand the factors driving these fluctuations in returns.
Peer comparison
Dec 31, 2023