MACOM Technology Solutions Holdings Inc (MTSI)

Return on equity (ROE)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Net income (ttm)	US$ in thousands	76,859	71,895	63,809	74,584	91,577	306,463	326,844	330,647	439,955	217,748	200,519	185,768	37,973	38,336	-1,651	-26,684	-46,078	-53,054	-352,786	-388,764
Total stockholders’ equity	US$ in thousands	1,126,340	1,081,050	1,045,610	1,024,090	947,600	914,708	894,015	862,544	842,748	595,640	554,283	524,774	471,736	445,793	412,133	329,450	300,146	273,304	285,731	293,520
ROE		6.82%	6.65%	6.10%	7.28%	9.66%	33.50%	36.56%	38.33%	52.20%	36.56%	36.18%	35.40%	8.05%	8.60%	-0.40%	-8.10%	-15.35%	-19.41%	-123.47%	-132.45%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $76,859K ÷ $1,126,340K
= 6.82%

MACOM Technology Solutions Holdings Inc's return on equity (ROE) has shown fluctuations over the past few quarters. The ROE for the most recent quarter, September 30, 2024, was 6.82%, which is slightly higher compared to the previous quarter's ROE of 6.65%.

Looking back over the past year, the ROE has shown variability, with some quarters exhibiting significantly higher ROE figures like in March 2023 (36.56%) and December 2022 (38.33%). However, there have also been periods of lower and negative ROE, such as in the quarters ending March 31, 2021 (-0.40%), and December 31, 2020 (-8.10%).

The decreasing trend in ROE from high levels in 2022 to lower levels in 2023 and 2024 could indicate challenges in generating profits relative to shareholder equity. The negative ROE figures in past quarters also suggest that the company may have struggled to generate profits to cover shareholder investments during those periods.

Overall, a consistent and sustained improvement in ROE would be desirable for MACOM Technology Solutions Holdings Inc as it would indicate effective utilization of shareholder equity to generate profits. Monitoring the trends and analyzing the reasons behind the fluctuations in ROE can provide insights into the company's financial performance and operational efficiency.