MaxLinear Inc (MXL)
Return on equity (ROE)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -245,198 | -225,860 | -189,904 | -154,989 | -73,147 | -3,567 | 64,670 | 100,987 | 125,040 | 122,136 | 102,986 | 71,753 | 41,969 | -10,879 | -56,782 | -79,322 | -98,593 | -82,025 | -50,094 | -30,516 |
| Total stockholders’ equity | US$ in thousands | 516,283 | 556,872 | 617,255 | 637,983 | 686,265 | 702,677 | 746,047 | 734,112 | 676,385 | 615,881 | 569,597 | 527,846 | 489,198 | 457,543 | 433,667 | 420,778 | 391,117 | 396,808 | 401,975 | 408,157 |
| ROE | -47.49% | -40.56% | -30.77% | -24.29% | -10.66% | -0.51% | 8.67% | 13.76% | 18.49% | 19.83% | 18.08% | 13.59% | 8.58% | -2.38% | -13.09% | -18.85% | -25.21% | -20.67% | -12.46% | -7.48% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-245,198K ÷ $516,283K
= -47.49%
MaxLinear Inc experienced a significant fluctuation in its return on equity (ROE) over the past few years. The company's ROE was negative for most of the quarters up until December 31, 2021, indicating that it was generating a lower return relative to its shareholders' equity.
Starting from March 31, 2022, the ROE began to improve, reaching its peak at 19.83% on September 30, 2022. This was a positive sign as it showed that the company was becoming more efficient in utilizing shareholders' equity to generate profits.
However, the ROE started to decline again from December 31, 2022, and continued to decrease in the subsequent quarters, falling to -47.49% by December 31, 2024. This downward trend could be concerning for investors as it indicates a decreasing ability of the company to generate profits from the shareholders' equity.
In conclusion, MaxLinear Inc's ROE has shown both positive and negative trends over the years, reflecting fluctuations in its profitability and efficiency in utilizing shareholder funds. Investors and stakeholders may need to closely monitor the company's financial performance to assess its future prospects.
Peer comparison
Dec 31, 2024