MACOM Technology Solutions Holdings Inc (MTSI)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 76,859 | 91,577 | 439,955 | 37,973 | -46,078 |
| Total stockholders’ equity | US$ in thousands | 1,126,340 | 947,600 | 842,748 | 471,736 | 300,146 |
| ROE | 6.82% | 9.66% | 52.20% | 8.05% | -15.35% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $76,859K ÷ $1,126,340K
= 6.82%
MACOM Technology Solutions Holdings Inc's return on equity (ROE) has shown variability over the past five years, ranging from -15.35% in 2020 to 52.20% in 2022. In 2021, the ROE was 8.05%, followed by 9.66% in 2023 and 6.82% in 2024.
The declining trend in ROE from 2022 to 2024 may indicate challenges in generating profit relative to shareholders' equity during these years. A lower ROE could be a result of factors such as increased expenses, lower profitability, or inefficient utilization of assets.
It is essential for MACOM Technology Solutions Holdings Inc to analyze the drivers behind the fluctuating ROE and take corrective actions to improve profitability and efficiency in order to enhance shareholder value in the future. Periodic review and adjustment of the company's strategies and operations may be necessary to maintain a healthy ROE and sustainable growth.
Peer comparison
Sep 30, 2024