Harmonic Inc (HLIT)

Return on equity (ROE)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net income (ttm) US$ in thousands 83,994 6,284 21,519 34,804 28,182 41,908 34,698 17,849 13,254 6,862 -49 -13,441 -29,271 -37,166 -20,128 -16,572 -5,924 -8,164 -27,579 -18,647
Total stockholders’ equity US$ in thousands 436,874 340,800 342,801 335,786 324,506 300,621 296,836 284,653 295,913 273,681 267,324 259,770 258,302 234,457 230,282 236,322 252,446 241,050 212,066 220,561
ROE 19.23% 1.84% 6.28% 10.36% 8.68% 13.94% 11.69% 6.27% 4.48% 2.51% -0.02% -5.17% -11.33% -15.85% -8.74% -7.01% -2.35% -3.39% -13.00% -8.45%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $83,994K ÷ $436,874K
= 19.23%

To analyze Harmonic, Inc.'s return on equity (ROE), we observe fluctuations in ROE over the past eight quarters. The trend indicates variability in the company's effectiveness in generating profits from shareholders' equity.

In Q4 2023, Harmonic, Inc. achieved an ROE of 19.23%, which is notably higher compared to the previous three quarters. This indicates a significant increase in profitability relative to the company's equity base. The substantial rise in ROE could result from improved operational efficiency, cost management, or revenue growth during this period.

Conversely, in Q3 2023, the ROE sharply declined to 1.84%, indicating a substantial decrease in profitability relative to equity. This considerable drop could be attributed to various factors such as declining revenues, increased expenses, or inefficiencies in asset utilization.

Looking at the broader trend, Harmonic, Inc. displayed fluctuating ROE levels throughout the quarters, with Q2 2022 and Q4 2022 recording relatively higher ROE figures compared to the other periods. Conversely, Q1 2023 and Q2 2023 showed lower ROE percentages, possibly indicating challenges or fluctuations in the company's financial performance during those quarters.

In conclusion, Harmonic, Inc.'s ROE has shown variability over the quarters, signaling fluctuations in the company's profitability relative to shareholder equity. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and performance sustainability.