Semtech Corporation (SMTC)

Return on equity (ROE)

Jan 31, 2025 Jan 31, 2024 Jan 28, 2024 Jan 31, 2023 Jan 29, 2023
Net income US$ in thousands -161,896 -1,092,030 -1,092,030 61,380 61,380
Total stockholders’ equity US$ in thousands 542,400 -307,434 -307,434 755,852 755,852
ROE -29.85% 8.12% 8.12%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-161,896K ÷ $542,400K
= -29.85%

The return on equity (ROE) for Semtech Corporation over the past few years has shown some fluctuations. In January 2023 and January 2024, the ROE remained constant at 8.12%. However, in January 2025, there was a significant decline in ROE to -29.85%, indicating that the company's profitability relative to its equity has deteriorated substantially. This negative ROE figure suggests that Semtech Corporation may be experiencing challenges in generating profits from its equity base, which could be a cause for concern for investors and stakeholders. Further analysis and investigation into the factors contributing to this sharp decline in ROE would be warranted to understand the underlying issues affecting the company's financial performance.