Qorvo Inc (QRVO)

Return on equity (ROE)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	55,615	-70,322	103,152	1,033,350	733,611
Total stockholders’ equity	US$ in thousands	3,392,310	3,556,370	3,902,790	4,553,220	4,629,420
ROE		1.64%	-1.98%	2.64%	22.69%	15.85%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $55,615K ÷ $3,392,310K
= 1.64%

Qorvo Inc's return on equity (ROE) has shown fluctuations over the past few years, indicating a changing trend in the company's profitability and efficiency in utilizing shareholder equity.

In March 2021, Qorvo's ROE stood at 15.85%, demonstrating a decent return for shareholders compared to their equity investments. The following year, in March 2022, the ROE increased to 22.69%, showcasing an improvement in the company's ability to generate profits from shareholder equity.

However, there was a significant decline in March 2023, with the ROE dropping to 2.64%. This sharp decline may signal potential issues in the company's operations or financial performance that impacted its profitability relative to its equity base.

The situation worsened in March 2024, where Qorvo's ROE turned negative at -1.98%. A negative ROE generally indicates that the company is not effectively utilizing the equity provided by shareholders to generate profits, raising concerns about its financial health and operational efficiency.

Despite the challenges, there was a slight recovery in March 2025, with the ROE improving to 1.64%. While this uptick is a positive sign, the ROE still remains relatively low, suggesting that Qorvo may need to focus on enhancing its profitability and efficiency in the future to ensure sustained returns for its shareholders.