Harmonic Inc (HLIT)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 39,217 83,994 28,182 13,254 -29,271
Total stockholders’ equity US$ in thousands 465,258 436,874 324,506 296,796 258,302
ROE 8.43% 19.23% 8.68% 4.47% -11.33%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $39,217K ÷ $465,258K
= 8.43%

Harmonic Inc's return on equity (ROE) has shown varying trends over the years, as per the provided data.

- In December 31, 2020, the ROE was negative at -11.33%, indicating that the company's net income was insufficient to generate a positive return for equity investors.
- By December 31, 2021, the ROE improved to 4.47%, showing a move towards profitability but still relatively low.
- In December 31, 2022, the ROE further increased to 8.68%, signaling better efficiency in utilizing shareholder equity to generate profits.
- The highest ROE in the dataset was recorded on December 31, 2023, at 19.23%, indicating a significant improvement in profitability and efficient use of equity.
- However, by December 31, 2024, the ROE dropped slightly to 8.43%, although it remained higher than in the previous years.

Overall, Harmonic Inc's ROE has demonstrated both periods of negative and positive returns, with a general improvement in recent years, suggesting better profitability and efficiency in utilizing shareholder equity for generating returns.