FormFactor Inc (FORM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	82,387	50,738	83,924	78,523	39,346
Total stockholders’ equity	US$ in thousands	908,804	808,285	815,780	744,084	640,997
ROE		9.07%	6.28%	10.29%	10.55%	6.14%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $82,387K ÷ $908,804K
= 9.07%

FormFactor Inc's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE stood at 9.07%, showing an increase from the prior year. This improvement suggests that the company generated a higher return for its shareholders' equity compared to 2022.

Looking back, in 2022, FormFactor Inc's ROE was 6.28%, which was lower than the ROE of 10.29% in 2021. The dip in ROE in 2022 may indicate a period of lower profitability or less efficient use of equity to generate earnings compared to the previous year.

Moreover, the ROE of 10.55% in 2020 and 6.14% in 2019 demonstrates variations in the company's ability to generate profits from shareholders' equity. The higher ROE in 2020 indicates a better performance than in 2019.

Overall, FormFactor Inc has experienced fluctuations in its ROE over the past five years. Investors and stakeholders should further investigate the factors influencing these changes to gain a deeper understanding of the company's financial performance and profitability.