IPG Photonics Corporation (IPGP)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	218,878	84,555	105,825	100,472	109,909	267,891	267,029	279,861	278,416	262,668	222,870	191,296	159,572	105,783	127,432	161,478	180,234	260,243	303,507	352,852
Total stockholders’ equity	US$ in thousands	2,415,380	2,383,950	2,398,550	2,338,520	2,385,360	2,580,510	2,639,220	2,707,250	2,746,580	2,739,350	2,704,920	2,639,500	2,592,820	2,470,210	2,436,350	2,355,070	2,401,730	2,380,110	2,366,650	2,267,840
ROE		9.06%	3.55%	4.41%	4.30%	4.61%	10.38%	10.12%	10.34%	10.14%	9.59%	8.24%	7.25%	6.15%	4.28%	5.23%	6.86%	7.50%	10.93%	12.82%	15.56%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $218,878K ÷ $2,415,380K
= 9.06%

The return on equity (ROE) for IPG Photonics Corp has shown fluctuation over the past eight quarters, ranging from a low of 3.55% in Q3 2023 to a high of 10.38% in Q3 2022. The ROE for Q4 2023 stands at 9.06%, indicating a modest improvement from the previous quarter.

The trend in ROE suggests that the company's ability to generate profit from shareholder equity has been somewhat volatile. The lower ROE figures in recent quarters may potentially indicate inefficiencies in the company's operations or increased costs relative to the profits generated.

To further evaluate the reasons behind the fluctuating ROE, it would be necessary to assess the company's financial statements in more detail, specifically analyzing factors such as profit margins, asset turnover, and debt levels. Additional insights could be gained by comparing IPG Photonics Corp's ROE to industry averages or to the performance of its competitors.