FormFactor Inc (FORM)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	69,614	82,387	50,738	83,924	78,523
Total stockholders’ equity	US$ in thousands	947,768	908,804	808,285	815,780	744,084
ROE		7.35%	9.07%	6.28%	10.29%	10.55%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $69,614K ÷ $947,768K
= 7.35%

FormFactor Inc's return on equity (ROE) has shown fluctuations over the past five years.

As of December 31, 2020, the ROE stood at 10.55%, indicating that for every dollar of shareholder equity, the company generated a return of 10.55%.

By December 31, 2021, the ROE had slightly decreased to 10.29%, still reflecting a reasonable return for shareholders.

However, in the following years, the ROE experienced a decline. By December 31, 2022, FormFactor's ROE had dropped to 6.28%, suggesting a reduced profitability relative to the shareholders' equity.

There was a slight improvement by December 31, 2023, as the ROE increased to 9.07%, but it remained below the levels seen in the earlier years.

By the end of December 31, 2024, the ROE further decreased to 7.35%, signaling a continued challenge in generating returns on the equity invested in the company.

Overall, the trend in FormFactor Inc's ROE indicates some instability and a need for further analysis to understand the factors influencing the profitability and efficiency of the company's operations.