Kulicke and Soffa Industries Inc (KLIC)

Return on equity (ROE)

		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	Dec 31, 2019
Net income (ttm)	US$ in thousands	-69,006	-57,766	-65,869	51,852	57,148	98,695	213,568	314,528	433,545	502,352	497,084	452,403	367,160	249,233	146,618	87,186	52,300	42,920	33,056	17,613
Total stockholders’ equity	US$ in thousands	944,009	973,538	1,012,180	1,161,250	1,174,560	1,169,710	1,183,700	1,177,230	1,194,650	1,206,730	1,137,250	1,207,180	1,095,240	973,342	866,860	807,616	757,994	749,644	762,398	775,653
ROE		-7.31%	-5.93%	-6.51%	4.47%	4.87%	8.44%	18.04%	26.72%	36.29%	41.63%	43.71%	37.48%	33.52%	25.61%	16.91%	10.80%	6.90%	5.73%	4.34%	2.27%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-69,006K ÷ $944,009K
= -7.31%

Kulicke and Soffa Industries Inc's return on equity (ROE) has shown fluctuations over the past few quarters. The ROE has been negative in recent quarters, indicating that the company's net income is not sufficient to generate a positive return for shareholders. This is a concerning trend as negative ROE can be a red flag for investors and may suggest financial difficulties.

Looking back further, there was a notable decline in ROE from the high levels achieved in the previous years. This could be due to various factors such as increased expenses, lower profitability, or changes in capital structure.

It is important for stakeholders to closely monitor Kulicke and Soffa Industries Inc's financial performance and assess the reasons behind the declining ROE. Management may need to implement strategies to improve profitability, enhance operational efficiency, or optimize the use of capital to reverse this trend and create value for shareholders.