SanDisk Corp (SNDK)
Return on equity (ROE)
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 388,478 | 1,007,450 | 1,042,660 | 417,404 | 1,300,140 |
| Total stockholders’ equity | US$ in thousands | 5,738,920 | 6,528,060 | 6,967,870 | 7,263,900 | 7,064,360 |
| ROE | 6.77% | 15.43% | 14.96% | 5.75% | 18.40% |
December 31, 2015 calculation
ROE = Net income ÷ Total stockholders’ equity
= $388,478K ÷ $5,738,920K
= 6.77%
SanDisk Corp's return on equity (ROE) has displayed fluctuating trends over the period from December 31, 2011, to December 31, 2015. In 2011, the company achieved a relatively strong ROE of 18.40%, indicating efficient utilization of shareholders' equity to generate profit. However, there was a significant decline in ROE in 2012 to 5.75%, suggesting a decrease in profitability or less effective management of equity.
The company experienced a rebound in 2013 with an ROE of 14.96%, showing improved profitability and potentially better capital allocation strategies. This positive trend continued into 2014, with a slightly higher ROE of 15.43%, indicating sustained performance in generating returns for shareholders.
Nonetheless, there was a notable drop in ROE in 2015 to 6.77%, signifying a potential decline in the efficiency of using equity to generate profits or possibly indicating challenges faced by the company during that period.
Overall, SanDisk Corp's ROE performance has been variable, reflecting changes in the company's ability to generate returns from shareholders' equity. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's overall financial health and potential future performance.
Peer comparison
Dec 31, 2015