Harmonic Inc (HLIT)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 39,217 84,938 56,725 70,812 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
Total stockholders’ equity US$ in thousands 465,258 428,937 392,808 409,154 436,874 340,800 342,801 335,786 324,506 300,621 296,836 284,653 296,796 274,796 267,324 261,334 258,302 234,538 230,282 238,099
ROE 8.43% 19.80% 14.44% 17.31% 19.23% 1.84% 6.28% 10.36% 8.68% 13.94% 11.69% 6.27% 4.47% 2.50% -0.02% -5.14% -11.33% -15.85% -8.74% -6.96%

December 31, 2024 calculation

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

Harmonic Inc's return on equity (ROE) has experienced significant fluctuations over the past few years. The company had negative ROE values in the range of -6.96% to -15.85% from March 2020 to September 2020, indicating challenges in generating profits relative to shareholder equity during that period.

Subsequently, the ROE improved gradually, turning positive in September 2021 at 2.50%, and continued to increase in the following quarters. By December 2023, the ROE reached a peak of 19.23%, demonstrating the company's ability to generate substantial returns for its shareholders.

However, there was a slight decline in ROE from March 2024 to June 2024, dropping from 17.31% to 14.44%. The ROE then rebounded in September 2024 to 19.80% before decreasing to 8.43% by December 2024.

Overall, Harmonic Inc's ROE has shown volatility but has generally trended upwards, reflecting improvements in the company's profitability and efficiency in generating returns from shareholder equity. The management may need to closely monitor and assess the factors influencing ROE to sustain and enhance the company's performance in the future.