Cohu Inc (COHU)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -69,818 28,156 96,847 167,325 -13,843
Total stockholders’ equity US$ in thousands 856,891 950,170 928,841 882,502 511,624
ROE -8.15% 2.96% 10.43% 18.96% -2.71%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-69,818K ÷ $856,891K
= -8.15%

Based on the data provided, Cohu Inc's return on equity (ROE) has exhibited significant fluctuations over the years. In 2020, the company reported a negative ROE of -2.71%, indicating that the company's net income was insufficient to generate a positive return on shareholders' equity.

However, there was a notable improvement in 2021, with ROE increasing to 18.96%. This could suggest that Cohu Inc effectively utilized its shareholders' equity to generate higher profits during that period.

In 2022, the ROE decreased to 10.43%, indicating a decline in the company's profitability relative to the previous year. This could be a result of various factors such as increased expenses or lower revenue.

By 2023, the ROE further dropped to 2.96%, signaling a continued decrease in the company's ability to generate returns for its shareholders.

The trend continued in 2024, with the ROE falling into negative territory at -8.15%, indicating that Cohu Inc experienced significant challenges in generating profits relative to the equity invested by shareholders.

In conclusion, the fluctuating ROE of Cohu Inc over the years suggests that the company's profitability and efficiency in utilizing shareholders' equity have been inconsistent and may warrant further investigation to identify the underlying reasons for these fluctuations.