Lumentum Holdings Inc (LITE)
Return on equity (ROE)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 25,900 | -546,500 | -131,600 | 198,900 | 397,300 |
| Total stockholders’ equity | US$ in thousands | 1,134,700 | 957,300 | 1,355,800 | 1,875,000 | 1,972,800 |
| ROE | 2.28% | -57.09% | -9.71% | 10.61% | 20.14% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $25,900K ÷ $1,134,700K
= 2.28%
The return on equity (ROE) for Lumentum Holdings Inc. has exhibited significant fluctuations over the observed period from June 30, 2021, through June 30, 2025. As of June 30, 2021, the company's ROE stood at 20.14%, indicating a strong ability to generate profits relative to shareholders' equity. This high return suggests effective utilization of equity capital during that period.
By June 30, 2022, the ROE declined markedly to 10.61%, reflecting a reduction in profitability or efficiency in generating returns on shareholders' equity. The downward trend continued into the subsequent year, with the ROE turning negative at -9.71% as of June 30, 2023. This negative figure indicates that the company experienced net losses attributable to shareholders, adversely impacting equity returns.
The situation worsened by June 30, 2024, when the ROE further deteriorated to -57.09%. Such a pronounced negative ratio implies substantial losses relative to shareholders' equity, often due to factors such as impairments, restructuring costs, or declining sales and margins. It also suggests that the company's ability to generate profits on equity has been severely compromised during this period.
However, the financial performance shows signs of partial recovery by June 30, 2025, with the ROE rising to 2.28%. Although this positive movement indicates some improvement in profitability and efficiency, it remains modest relative to earlier peak levels. The return on equity implies that the company has managed to generate a slight profit relative to its shareholders' equity after a period of substantial losses.
Overall, the trend reflects considerable volatility in Lumentum Holdings Inc.'s ability to produce returns on equity. The initial strong profit generation shifted to instability and losses, with recent data suggesting a tentative turnaround. This volatility may be indicative of underlying strategic, operational, or market challenges faced by the company during the analyzed timeframe.
Peer comparison
Jun 30, 2025