NXP Semiconductors NV (NXPI)

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	2,510,000	2,712,000	2,781,000	2,821,000	2,797,000	2,822,000	2,773,000	2,745,000	2,787,000	2,667,000	2,448,000	2,175,000	1,871,000	1,578,000	1,037,000	426,000	52,000	-143,000	-12,000	311,000
Total stockholders’ equity	US$ in thousands	9,531,000	9,406,000	9,018,000	8,829,000	8,644,000	8,488,000	8,172,000	7,949,000	7,449,000	7,106,000	6,962,000	6,509,000	6,528,000	6,738,000	7,442,000	8,303,000	8,944,000	8,876,000	8,862,000	9,036,000
ROE		26.34%	28.83%	30.84%	31.95%	32.36%	33.25%	33.93%	34.53%	37.41%	37.53%	35.16%	33.42%	28.66%	23.42%	13.93%	5.13%	0.58%	-1.61%	-0.14%	3.44%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,510,000K ÷ $9,531,000K
= 26.34%

NXP Semiconductors NV has shown varying levels of return on equity (ROE) over the past few years. The ROE was at a low of -1.61% as of September 30, 2020, indicating that the company's net income was generating a minimal return relative to shareholders' equity.

However, the ROE started to improve in the following quarters, with significant increases in subsequent periods. By December 31, 2021, the ROE reached 28.66%, signifying a substantial improvement in profitability and efficiency in utilizing shareholders' equity to generate profits.

The trend continued positively, and NXP Semiconductors NV achieved even higher ROE figures in the subsequent quarters, peaking at 37.53% as of September 30, 2022. This indicates a strong performance in terms of generating profits from the shareholders' equity investment.

Although the ROE showed a slight decline in the following periods, dropping to 26.34% as of December 31, 2024, the overall trend demonstrates that NXP Semiconductors NV has been effectively utilizing shareholders' equity to generate returns for the company.

Overall, the company has shown a positive trend in ROE with some fluctuations, indicating a reasonably efficient utilization of shareholder funds to drive profitability and generate returns over the analyzed period.