IPG Photonics Corporation (IPGP)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -181,526 | 218,878 | 109,909 | 278,416 | 159,572 |
| Total stockholders’ equity | US$ in thousands | 2,024,470 | 2,415,380 | 2,385,360 | 2,746,580 | 2,592,820 |
| ROE | -8.97% | 9.06% | 4.61% | 10.14% | 6.15% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-181,526K ÷ $2,024,470K
= -8.97%
The return on equity (ROE) for IPG Photonics Corporation has fluctuated over the past five years, indicating varying levels of profitability generated from shareholders' equity.
- As of December 31, 2020, the ROE stood at 6.15%, suggesting a moderate return on equity.
- By December 31, 2021, the ROE had improved to 10.14%, indicating increased profitability generated from shareholders' investment.
- However, in December 31, 2022, the ROE dropped to 4.61%, indicating a decrease in profitability relative to shareholders' equity.
- The ROE showed a recovery by December 31, 2023, reaching 9.06%, reflecting improved profitability.
- Unfortunately, by December 31, 2024, the ROE sharply declined to -8.97%, indicating a negative return on equity, which may raise concerns about the company's ability to generate profits relative to shareholders' investment.
In conclusion, the fluctuating trend in ROE for IPG Photonics Corporation over the five-year period suggests inconsistent profitability and efficiency in utilizing shareholders' equity. Further analysis of the company's financial performance and strategies may be necessary to understand the reasons behind these fluctuations and assess the company's overall financial health.
Peer comparison
Dec 31, 2024