Semtech Corporation (SMTC)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -161,940 | -843,403 | -1,478,180 | -1,346,135 | -1,361,226 | -1,100,865 | -840,504 | -831,664 | -844,427 | -513,438 | -108,690 | -56,534 | 46,077 | 135,139 | 150,442 | 162,500 | 145,706 | 142,084 | 136,968 | 135,097 |
| Total stockholders’ equity | US$ in thousands | 542,400 | -46,791 | -141,437 | -313,098 | -307,434 | -307,434 | 334,261 | 334,261 | 366,835 | 366,835 | 733,028 | 755,852 | 755,852 | 792,412 | 792,412 | 798,858 | 734,983 | 734,983 | 737,584 | 737,584 |
| ROE | -29.86% | — | — | — | — | — | -251.45% | -248.81% | -230.19% | -139.96% | -14.83% | -7.48% | 6.10% | 17.05% | 18.99% | 20.34% | 19.82% | 19.33% | 18.57% | 18.32% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-161,940K ÷ $542,400K
= -29.86%
The return on equity (ROE) of Semtech Corporation has been fluctuating over the years based on the provided data.
From January 30, 2022, to July 31, 2022, the ROE showed a gradual increase from 18.32% to 20.34%, indicating an improvement in profitability and efficiency in generating returns for shareholders.
However, starting from January 29, 2023, the ROE experienced a significant decline, turning negative and reaching as low as -251.45% by October 31, 2023. This negative trend suggests that the company's net income might be insufficient to cover shareholder equity, potentially indicating financial distress or operational challenges.
The absence of data for the ROE in the subsequent periods indicates a lack of clarity on the company's financial performance during those periods.
Finally, the ROE for January 31, 2025, further declined to -29.86%, underlining ongoing challenges with profitability and efficiency in utilizing shareholder equity. It is important for Semtech Corporation to address these issues and implement strategic measures to improve its ROE going forward.
Peer comparison
Jan 31, 2025