Mercury Systems Inc (MRCY)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -137,640 | -28,335 | 11,275 | 62,044 | 85,712 |
| Total stockholders’ equity | US$ in thousands | 1,472,780 | 1,566,680 | 1,537,180 | 1,484,150 | 1,384,780 |
| ROE | -9.35% | -1.81% | 0.73% | 4.18% | 6.19% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-137,640K ÷ $1,472,780K
= -9.35%
Mercury Systems Inc's return on equity (ROE) has shown a decreasing trend over the past five years. The ROE was 6.19% in 2020, but it has been declining since then, reaching a negative ROE of -9.35% in 2024. This negative ROE indicates that the company is generating a negative return for its shareholders' equity.
The decreasing trend in ROE suggests that Mercury Systems Inc may be facing challenges in efficiently utilizing its equity to generate profits. This could be a result of declining profitability, inefficient asset utilization, or increasing debt burdens.
It is important for the company to identify the factors contributing to the decline in ROE and implement strategies to improve its financial performance and return on equity. Analyzing key financial metrics and industry benchmarks can help Mercury Systems Inc in identifying areas for improvement and making informed strategic decisions to enhance shareholder value.
Peer comparison
Jun 30, 2024