Knowles Cor (KN)
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 | 72,400 | -183,000 | -196,900 | -453,400 | -430,100 | -129,500 | -104,500 | 156,000 | 150,400 | 87,400 | 65,300 | 28,200 | 6,600 | -2,500 | 17,300 | 42,700 | 49,100 | 108,200 | 66,600 | 65,300 |
| Total stockholders’ equity | US$ in thousands | 1,034,100 | 993,300 | 986,500 | 987,400 | 992,900 | 1,180,200 | 1,203,600 | 1,474,100 | 1,459,500 | 1,366,100 | 1,332,100 | 1,323,700 | 1,303,500 | 1,264,600 | 1,243,800 | 1,253,800 | 1,288,500 | 1,257,300 | 1,227,200 | 1,216,500 |
| ROE | 7.00% | -18.42% | -19.96% | -45.92% | -43.32% | -10.97% | -8.68% | 10.58% | 10.30% | 6.40% | 4.90% | 2.13% | 0.51% | -0.20% | 1.39% | 3.41% | 3.81% | 8.61% | 5.43% | 5.37% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $72,400K ÷ $1,034,100K
= 7.00%
Knowles Corp's return on equity (ROE) has exhibited significant fluctuations over the past eight quarters. In Q4 2022, the company reported an ROE of -43.27%, reflecting a substantial decline in profitability. However, in the following quarters of 2022, the ROE improved but remained negative, indicating ongoing challenges in generating returns for shareholders.
The trend continued into 2023, with ROE values remaining negative in Q1 and Q2, reaching their lowest point in Q1 2023 at -45.92%. This suggests that Knowles Corp faced profitability issues and struggled to effectively utilize shareholder equity during this period.
However, there was a notable improvement in Q4 2023, with the ROE increasing to 7.00%. While this represents a move in the positive direction, it is important to further analyze the reasons behind this improvement and assess whether it is sustainable in the long term.
Overall, the fluctuating and predominantly negative ROE values for Knowles Corp indicate challenges in efficiently utilizing shareholder equity to generate profits. Further analysis of the company's financial performance and operational strategies is warranted to determine the factors contributing to these fluctuations and assess the company's potential for future growth and profitability.
Peer comparison
Dec 31, 2023