Harmonic Inc (HLIT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 83,994 | 28,182 | 13,254 | -29,271 | -5,924 |
| Total stockholders’ equity | US$ in thousands | 436,874 | 324,506 | 295,913 | 258,302 | 252,446 |
| ROE | 19.23% | 8.68% | 4.48% | -11.33% | -2.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $83,994K ÷ $436,874K
= 19.23%
Harmonic, Inc.'s return on equity (ROE) has shown varying trends over the past five years. From 2019 to 2023, there has been a notable improvement in the company's ROE performance. In 2019, the ROE was a negative -2.35%, indicating that the company was generating a loss with its equity.
However, by 2023, Harmonic, Inc. significantly improved its ROE to 19.23%, which suggests that the company is generating a healthy return on the equity invested by shareholders. This improvement can be attributed to various factors such as better operational efficiency, effective cost management, increased profitability, or potentially a shift in the company's capital structure.
The trend of increasing ROE over the years indicates that Harmonic, Inc. has been utilizing its equity more efficiently to generate profits for its shareholders. Investors and stakeholders may view this as a positive sign of the company's financial health and management's ability to generate returns on shareholder investments. It also suggests an improvement in the company's overall profitability and potentially its competitive position within the industry.
Peer comparison
Dec 31, 2023