Lumentum Holdings Inc (LITE)
Return on equity (ROE)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -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 | 135,500 | 114,300 | -3,400 | -36,200 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,749,200 | 1,734,200 | 1,681,600 | 1,561,300 |
| ROE | -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% | 7.75% | 6.59% | -0.20% | -2.32% |
June 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-546,500K ÷ $957,300K
= -57.09%
Lumentum Holdings Inc's return on equity (ROE) has displayed fluctuating trends over the past few quarters. The ROE has been negative in some recent periods, indicating that the company's net income has not been sufficient to generate a positive return for shareholders.
The negative ROE values in the two most recent quarters (Jun 30, 2024 and Mar 31, 2024) at -57.09% and -30.10% suggest a significant decline in shareholder value and profitability challenges. This decline in ROE may raise concerns among investors and stakeholders regarding the company's financial health and operational efficiency.
Looking back further, there was a gradual improvement in ROE from the end of 2020 through the first half of 2023, reaching a peak of 20.88% in Sep 30, 2021. This positive trend indicates that the company was effectively utilizing its shareholders' equity to generate profits during that period.
The varying ROE values suggest that Lumentum Holdings Inc's profitability and efficiency have been inconsistent over the analyzed periods. Investors and analysts may need to closely monitor the company's financial performance and strategy implementation to assess its ability to enhance shareholder value in the future.
Peer comparison
Jun 30, 2024