Mercury Systems Inc (MRCY)
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 | -137,640 | -135,099 | -85,369 | -50,708 | -28,335 | -3,184 | -4,201 | 4,080 | 11,275 | 12,285 | 23,781 | 39,106 | 62,044 | 71,343 | 79,273 | 82,263 | 85,712 | 71,292 | 61,836 | 58,543 |
| Total stockholders’ equity | US$ in thousands | 1,472,780 | 1,472,790 | 1,504,490 | 1,540,810 | 1,566,680 | 1,560,900 | 1,544,090 | 1,538,930 | 1,537,180 | 1,500,440 | 1,487,120 | 1,479,480 | 1,484,150 | 1,453,980 | 1,430,630 | 1,407,890 | 1,384,780 | 1,349,430 | 1,317,060 | 1,295,280 |
| ROE | -9.35% | -9.17% | -5.67% | -3.29% | -1.81% | -0.20% | -0.27% | 0.27% | 0.73% | 0.82% | 1.60% | 2.64% | 4.18% | 4.91% | 5.54% | 5.84% | 6.19% | 5.28% | 4.70% | 4.52% |
June 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-137,640K ÷ $1,472,780K
= -9.35%
Mercury Systems Inc's return on equity (ROE) has shown significant fluctuation over the past few quarters. The ROE has been negative in some quarters, indicating that the company's net income was insufficient to cover shareholders' equity. This negative trend in ROE may raise concerns among investors and stakeholders.
However, there has been a slight improvement in ROE in the most recent quarters, with numbers moving from negative to positive. Despite this improvement, the ROE still remains relatively low compared to historical levels.
The increasing trend in ROE from the most recent quarters indicates that Mercury Systems Inc may have started to generate more profit from shareholders' equity. It is essential for the company to sustain this upward trend in ROE in order to demonstrate effective utilization of equity investments and enhance shareholder value in the future.
Overall, Mercury Systems Inc's ROE performance suggests a mix of challenges and opportunities, and it will be crucial for the company to continue monitoring and improving its profitability metrics to drive sustained growth and value creation for its shareholders.
Peer comparison
Jun 30, 2024