MaxLinear Inc (MXL)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -245,198 -73,147 125,040 41,969 -98,593
Total stockholders’ equity US$ in thousands 516,283 686,265 676,385 489,198 391,117
ROE -47.49% -10.66% 18.49% 8.58% -25.21%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-245,198K ÷ $516,283K
= -47.49%

MaxLinear Inc has experienced fluctuations in its return on equity (ROE) over the years based on the provided data.

Starting with a negative ROE of -25.21% as of December 31, 2020, the company managed to turn the trend around and improve its ROE to 8.58% by December 31, 2021. This positive momentum continued into the following year, with a notable increase to 18.49% by December 31, 2022.

However, the company faced a setback in its ROE performance as it dropped to -10.66% by December 31, 2023. This decline was followed by a significant decrease in ROE to -47.49% by December 31, 2024, indicating a sharp decline in profitability relative to shareholders' equity.

Overall, the fluctuating trend in MaxLinear Inc's ROE reflects varying levels of profitability and efficiency in generating returns for shareholders over the specified period. It is important for the company to analyze the factors contributing to these fluctuations and implement appropriate strategies to sustain and improve its ROE in the future.