Sandisk Corp (SNDK)

Return on equity (ROE)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Dec 31, 2015
Net income US$ in thousands -1,641,000 -672,000 -2,143,000 1,064,000 388,478
Total stockholders’ equity US$ in thousands 9,216,000 11,082,000 11,439,000 12,977,000 5,738,920
ROE -17.81% -6.06% -18.73% 8.20% 6.77%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-1,641,000K ÷ $9,216,000K
= -17.81%

The analysis of Sandisk Corp's return on equity (ROE) over the specified periods reveals significant fluctuations in profitability and efficiency metrics. As of December 31, 2015, the company demonstrated a relatively modest ROE of approximately 6.77%, indicating that it was generating a modest return on shareholders' equity during that time. This level of ROE suggests limited profitability relative to equity, possibly reflective of maturation or competitive pressures within the industry.

By June 30, 2022, the ROE showed an improvement to approximately 8.20%, indicating a marginal increase in profitability and potentially improved operational efficiency or favorable market conditions. This upward trend suggests that the company was able to enhance its capacity to generate earnings relative to shareholders' investments over this period.

However, a notable decline is observed in subsequent years. As of June 30, 2023, the ROE turned negative at around -18.73%, signaling a period of significant losses and possibly reflecting extraordinary or non-recurring charges, restructuring, or adverse market developments affecting profitability. The negative ROE indicates that the company’s net income was insufficient to generate returns on shareholder equity during this period.

The negative trend persists, with the ROE further deteriorating to approximately -6.06% by June 30, 2024, and reaching approximately -17.81% by June 30, 2025. These declines suggest ongoing difficulties in maintaining profitability, potentially driven by industry headwinds, technological shifts, increased costs, or missteps in strategic execution.

Overall, the trajectory demonstrates a transition from modest positive ROE in 2015 and 2022 to substantial negative returns in 2023 through 2025. This pattern underscores periods of financial distress or reductions in profitability, emphasizing the importance of further analysis into underlying operational and market factors influencing Sandisk Corp's equity returns during these periods.