Qorvo Inc (QRVO)
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 | 26,985 | -141,224 | -26,328 | -70,322 | -211,473 | -100,466 | -9,312 | 103,152 | 453,843 | 686,037 | 816,611 | 1,033,353 | 1,119,815 | 1,104,587 | 922,315 | 733,611 | 485,264 | 445,585 | 391,706 | 334,325 |
| Total stockholders’ equity | US$ in thousands | 3,380,430 | 3,410,170 | 3,486,260 | 3,556,370 | 3,638,350 | 3,817,190 | 3,812,220 | 3,902,790 | 4,164,570 | 4,322,140 | 4,300,600 | 4,553,220 | 4,667,200 | 4,727,750 | 4,648,390 | 4,629,420 | 4,503,700 | 4,407,170 | 4,351,240 | 4,292,660 |
| ROE | 0.80% | -4.14% | -0.76% | -1.98% | -5.81% | -2.63% | -0.24% | 2.64% | 10.90% | 15.87% | 18.99% | 22.69% | 23.99% | 23.36% | 19.84% | 15.85% | 10.77% | 10.11% | 9.00% | 7.79% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $26,985K ÷ $3,380,430K
= 0.80%
Qorvo Inc's return on equity (ROE) has shown fluctuations over the period under review, starting at 7.79% in March 2020 and reaching a peak of 23.99% by December 2021. This upward trend continued into the first half of 2022, with ROE reaching as high as 22.69% in March 2022. However, from June 2022 onwards, the ROE started declining, dropping to 0.80% by December 2024.
The company experienced strong ROE performance in the early part of the observation period, indicating efficient utilization of shareholders' equity to generate profits. The peak in ROE in December 2021 and subsequent high levels up to March 2022 suggest a period of exceptional profitability and efficiency in generating returns for shareholders.
However, the declining trend in ROE from June 2022 onwards may raise concerns about the company's ability to maintain or improve its profitability and efficiency in utilizing equity. The negative ROE values observed in the latter part of the period indicate that the company's net income may not be sufficient to cover its shareholders' equity, which can be a red flag for investors and stakeholders.
Overall, Qorvo Inc's ROE performance has witnessed both positive and negative trends over the period, reflecting fluctuations in profitability and efficiency in converting equity into earnings. Stakeholders should closely monitor future ROE figures to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2024