Lumentum Holdings Inc (LITE)
Return on equity (ROE)
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 25,900 | -439,900 | -522,800 | -561,000 | -546,500 | -354,200 | -266,500 | -199,100 | -131,600 | -36,700 | 28,600 | 117,000 | 198,900 | 185,700 | 385,200 | 411,700 | 397,300 | 371,200 | 189,100 | 155,000 |
| Total stockholders’ equity | US$ in thousands | 1,134,700 | 879,500 | 872,300 | 895,900 | 957,300 | 1,176,700 | 1,277,800 | 1,310,800 | 1,355,800 | 1,538,000 | 1,543,600 | 1,526,400 | 1,875,000 | 1,912,100 | 2,021,900 | 1,971,400 | 1,972,800 | 2,165,000 | 1,921,900 | 1,816,100 |
| ROE | 2.28% | -50.02% | -59.93% | -62.62% | -57.09% | -30.10% | -20.86% | -15.19% | -9.71% | -2.39% | 1.85% | 7.67% | 10.61% | 9.71% | 19.05% | 20.88% | 20.14% | 17.15% | 9.84% | 8.53% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $25,900K ÷ $1,134,700K
= 2.28%
The analysis of Lumentum Holdings Inc.'s return on equity (ROE) over the provided period reveals significant fluctuations indicative of evolving financial performance. Starting from a modest 8.53% as of September 30, 2020, the ROE exhibited a notable upward trajectory, reaching a peak of 20.88% on September 30, 2021. This period reflects a phase of robust profitability and efficient capital utilization, likely driven by favorable market conditions or strategic operational enhancements.
Subsequent quarters show a decline from the peak, with the ROE decreasing to 19.05% by December 31, 2021, and further contracting to 9.71% on March 31, 2022. During this interval, the company experienced a weakening of its profitability metrics, possibly due to industry cyclicality, competitive pressures, or operational challenges.
From the end of 2021 onwards, the ROE entered a pronounced downward trend, turning negative in March 2023 at -2.39%. The negative figures persisted and deepened considerably over subsequent quarters, reaching -62.62% as of September 30, 2024. This sustained negative ROE indicates that the company's net income has been insufficient to offset shareholder equity, reflecting substantial losses and diminished profitability.
In the most recent period extending into 2025, the ROE continued to register negative values, albeit with some signs of stabilization: it improved marginally to -50.02% on March 31, 2025, before executing an unusual positive turn to 2.28% on June 30, 2025. This positive shift may suggest a potential turnaround in profitability or changes in equity base, although the preceding trend underscores periods of ongoing losses.
Overall, the historical ROE pattern signifies a transition from periods of moderate profitability to increasingly adverse financial outcomes, culminating in significant negative returns that highlight substantial challenges faced by the company in generating profit relative to shareholder equity in recent periods.
Peer comparison
Jun 30, 2025