Ichor Holdings Ltd (ICHR)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-20,820	-42,985	72,804	70,899	33,279
Total stockholders’ equity	US$ in thousands	698,336	564,677	587,496	500,715	411,689
ROE		-2.98%	-7.61%	12.39%	14.16%	8.08%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-20,820K ÷ $698,336K
= -2.98%

Ichor Holdings Ltd's return on equity (ROE) has exhibited some fluctuations over the past five years.

- In December 2020, the ROE stood at 8.08%, indicating that for each dollar of shareholders' equity, the company generated 8.08 cents in net income.
- By December 2021, the ROE improved to 14.16%, suggesting a more efficient utilization of shareholder funds to generate profits.
- In December 2022, the ROE slightly decreased to 12.39%, although it still reflects a healthy return on shareholders' equity.
- However, a concerning trend emerges in the subsequent years, as the ROE turned negative.
- By December 2023, the ROE dropped to -7.61%, indicating that the company incurred a net loss relative to its shareholders' equity.
- The negative trend continued in December 2024, with the ROE further decreasing to -2.98%.

Overall, Ichor Holdings Ltd's ROE trend indicates some inconsistency in profitability and efficiency in recent years, with a significant decline into negative territory in the last two years. This negative ROE suggests that the company may be facing challenges in generating profits relative to the shareholders' equity invested in the business. Further analysis of the company's financial performance and strategic decisions may be necessary to address the declining trend in ROE and improve overall profitability.