Ichor Holdings Ltd (ICHR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -42,985 | 72,804 | 70,899 | 33,279 | 10,729 |
| Total stockholders’ equity | US$ in thousands | 564,677 | 587,496 | 500,715 | 411,689 | 221,416 |
| ROE | -7.61% | 12.39% | 14.16% | 8.08% | 4.85% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-42,985K ÷ $564,677K
= -7.61%
Ichor Holdings Ltd's return on equity (ROE) has fluctuated over the past five years, as illustrated in the data provided. The company experienced a negative ROE of -7.61% in 2023, indicating that the company's net income was insufficient to generate returns for its shareholders based on their equity investment. This negative ROE suggests potential concerns regarding the company's profitability and operational efficiency.
In contrast, Ichor Holdings Ltd demonstrated stronger ROE in the preceding years, with figures of 12.39% in 2022, 14.16% in 2021, 8.08% in 2020, and 4.85% in 2019. These positive ROE values indicate that the company was able to generate returns for its shareholders based on their equity investment during those years.
Overall, the trend in Ichor Holdings Ltd's ROE indicates inconsistent performance in generating returns for shareholders over the past five years, with variations in profitability and efficiency. It may be advisable for stakeholders to further evaluate the company's financial health and operational strategies to address the recent decline in ROE and sustain or improve shareholder value.
Peer comparison
Dec 31, 2023