Kratos Defense & Security Solutions (KTOS)
Return on equity (ROE)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 19,500 | 16,300 | 14,800 | 10,000 | -600 | -7,700 | -18,400 | -24,800 | -26,800 | -36,700 | -31,000 | -25,400 | -19,600 | -2,000 | 78,700 | 83,500 | 81,700 | 79,600 | 4,500 | 4,600 |
| Total stockholders’ equity | US$ in thousands | 1,387,600 | 1,353,200 | 1,342,900 | 1,329,300 | 1,306,100 | 976,000 | 953,400 | 945,600 | 931,200 | 936,300 | 935,400 | 938,100 | 932,300 | 945,100 | 941,800 | 935,900 | 929,000 | 925,300 | 835,300 | 824,500 |
| ROE | 1.41% | 1.20% | 1.10% | 0.75% | -0.05% | -0.79% | -1.93% | -2.62% | -2.88% | -3.92% | -3.31% | -2.71% | -2.10% | -0.21% | 8.36% | 8.92% | 8.79% | 8.60% | 0.54% | 0.56% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $19,500K ÷ $1,387,600K
= 1.41%
The analysis of Kratos Defense & Security Solutions’ return on equity (ROE) over the specified period reveals significant fluctuations and a general trend towards stabilization and gradual improvement. Initially, the company exhibited very low ROE figures, with values of 0.56% on June 30, 2020, and 0.54% on September 30, 2020, indicating minimal profitability relative to shareholders’ equity during that period.
Subsequently, a notable increase occurred, with ROE reaching 8.60% on December 31, 2020, and marginally rising to 8.92% by June 30, 2021. This period signifies a substantial enhancement in the company’s profitability metrics, suggesting improved operational performance or strategic efficiencies. However, this positive trajectory was not sustained, as ROE declined thereafter, dipping into negative territory at -0.21% on December 31, 2021, and further deteriorating to -3.92% by December 31, 2022.
The negative ROE figures through much of 2021 and 2022 indicate periods of loss generation relative to shareholders’ equity, possibly attributable to one-off charges, reinvestment strategies, or operational challenges impacting net income. The trend of worsening ROE persisted into early 2023, with values such as -2.88% on March 31, 2023, and -2.62% on June 30, 2023.
Beginning in late 2023 and progressing into 2024, the ROE shows signs of recovery. It improved to -1.93% on September 30, 2023, and further to -0.79% on December 31, 2023. Moving into the first quarter of 2024, the company’s ROE edged into positive territory at 0.75%, with subsequent quarters exhibiting continuous improvement—1.10% on September 30, 2024, 1.20% on December 31, 2024, and reaching 1.41% on March 31, 2025.
In summary, the historical ROE trend highlights periods of initial modest profitability, a significant upward movement followed by a sustained decline into negative territory, and a recent consistent recovery trajectory. The recent positive figures suggest ongoing efforts towards improved profitability and operational efficiency, with potential for further stabilization and growth in shareholder returns if the current trend persists.
Peer comparison
Mar 31, 2025