Sanmina Corporation (SANM)

Return on equity (ROE)

		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	Dec 31, 2019
Net income (ttm)	US$ in thousands	222,536	222,996	247,888	275,024	309,970	306,493	307,221	276,221	242,841	240,402	279,375	258,622	249,546	245,227	173,912	150,926	139,713	107,864	105,905	141,908
Total stockholders’ equity	US$ in thousands	2,196,620	68,988	69,533	67,539	2,168,950	65,882	2,217,990	63,275	56,325	1,768,560	1,805,040	1,852,760	1,878,630	1,839,120	1,735,110	1,677,950	1,623,370	1,653,480	1,617,750	1,679,380
ROE		10.13%	323.24%	356.50%	407.21%	14.29%	465.22%	13.85%	436.54%	431.14%	13.59%	15.48%	13.96%	13.28%	13.33%	10.02%	8.99%	8.61%	6.52%	6.55%	8.45%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $222,536K ÷ $2,196,620K
= 10.13%

Sanmina Corporation's return on equity (ROE) has shown significant fluctuations over the past few quarters. In the most recent quarter, ending September 30, 2024, the ROE stood at 10.13%, representing a decrease from the exceptionally high levels seen in the previous two quarters.

The ROE peaked at 465.22% in the quarter ending June 30, 2023, before experiencing a sharp decline in the subsequent quarters. It is important to note that such exceptionally high ROE figures may sometimes be indicative of a company taking on debt to finance its operations, resulting in a higher equity base and therefore inflated ROE figures.

Prior to the recent fluctuations, Sanmina Corporation's ROE had been relatively stable at moderate levels, ranging from 8% to 15%. These levels suggest that the company has been generating a reasonable return for its shareholders relative to its equity base during those periods.

Overall, the recent volatility in Sanmina Corporation's ROE warrants further investigation into the factors driving these fluctuations, such as changes in profitability, leverage, or asset efficiency. Additionally, it is essential to monitor future ROE figures to assess the company's long-term profitability and financial health.