Ichor Holdings Ltd (ICHR)
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 | -20,820 | -28,776 | -36,425 | -51,969 | -42,985 | -16,889 | 22,567 | 64,760 | 72,804 | 73,466 | 62,972 | 64,300 | 70,899 | 68,561 | 60,572 | 44,518 | 33,279 | 28,710 | 19,085 | 12,610 |
| Total stockholders’ equity | US$ in thousands | 698,336 | 697,275 | 694,876 | 697,232 | 564,677 | 572,679 | 577,303 | 593,464 | 587,496 | 569,845 | 537,324 | 511,829 | 500,715 | 480,656 | 458,483 | 431,062 | 411,689 | 254,667 | 238,190 | 229,520 |
| ROE | -2.98% | -4.13% | -5.24% | -7.45% | -7.61% | -2.95% | 3.91% | 10.91% | 12.39% | 12.89% | 11.72% | 12.56% | 14.16% | 14.26% | 13.21% | 10.33% | 8.08% | 11.27% | 8.01% | 5.49% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-20,820K ÷ $698,336K
= -2.98%
Ichor Holdings Ltd's return on equity (ROE) has shown significant fluctuations over the past few years. The ROE increased steadily from 5.49% in March 2020 to a peak of 14.26% in September 2021, indicating improved profitability and efficiency in generating earnings from shareholders' equity.
However, after reaching the peak, the ROE started to decline gradually. It decreased to 12.39% by December 2022, and the downward trend continued through the following periods. The ROE turned negative in March 2023, indicating that the company's net income was insufficient to cover the equity portion, leading to a loss. The negative trend persisted until December 2024, with the ROE reaching its lowest point of -2.98%.
The declining trend in ROE suggests that Ichor Holdings Ltd may be facing challenges in generating profits from shareholders' equity or effectively managing its assets to create value for its equity holders. It is important for the company to assess the underlying reasons for the declining ROE and take corrective actions to improve its financial performance and restore investor confidence.
Peer comparison
Dec 31, 2024