Sanmina Corporation (SANM)

Return on equity (ROE)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	309,970	240,384	249,546	139,713	141,515
Total stockholders’ equity	US$ in thousands	2,168,950	56,325	1,878,630	1,623,370	1,642,570
ROE		14.29%	426.78%	13.28%	8.61%	8.62%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $309,970K ÷ $2,168,950K
= 14.29%

To analyze the return on equity (ROE) of Sanmina Corp, we can observe the trend in the ROE over the past five years.

The ROE for Sanmina Corp has shown a fluctuating pattern over the specified period. In the most recent fiscal year ending Sep 30, 2023, the ROE was 14.29%, marking a slight increase from the previous year's 13.76%. This indicates that the company's ability to generate profits from shareholders' equity has improved slightly.

Comparing the ROE to that of Oct 2, 2021, which was 14.32%, we observe a marginal decrease in profitability. However, these figures denote a relatively stable ROE over the last three years, signifying consistent returns generated from the shareholders' equity.

In the fiscal year ending Oct 3, 2020, and Sep 28, 2019, the ROE was 8.57% and 8.62%, respectively. There was a substantial increase in ROE from 2019 to 2020, reflecting an improvement in the company's efficiency in using equity to generate profits.

Overall, the fluctuating ROE of Sanmina Corp signals varying levels of profitability from shareholders' equity over the past five years. A higher ROE indicates better efficiency in utilizing equity to generate profits for shareholders, and the company's ability to sustain ROE improvements would be instrumental in creating value for its investors. It would be valuable to delve deeper into the underlying factors affecting these fluctuations to gain a comprehensive understanding of Sanmina Corp's financial performance.