SanDisk Corp (SNDK)
Return on equity (ROE)
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 427,806 | 388,478 | 454,900 | 584,550 | 777,523 | 1,007,446 | 1,143,335 | 1,157,533 | 1,145,376 | 1,042,657 | 918,420 | 718,068 | 469,248 | 417,404 | 485,084 | 641,830 | 877,251 | 986,990 | 1,191,232 | 1,280,071 |
| Total stockholders’ equity | US$ in thousands | 5,330,080 | 5,738,920 | 5,634,080 | 5,621,980 | 5,953,460 | 6,655,200 | 7,064,710 | 7,302,100 | 7,232,260 | 6,967,870 | 6,605,540 | 7,347,840 | 7,322,430 | 7,263,900 | 7,212,360 | 7,041,840 | 7,032,640 | 5,782,620 | 6,719,030 | 6,363,730 |
| ROE | 8.03% | 6.77% | 8.07% | 10.40% | 13.06% | 15.14% | 16.18% | 15.85% | 15.84% | 14.96% | 13.90% | 9.77% | 6.41% | 5.75% | 6.73% | 9.11% | 12.47% | 17.07% | 17.73% | 20.12% |
March 31, 2016 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $427,806K ÷ $5,330,080K
= 8.03%
SanDisk Corp's return on equity (ROE) has shown fluctuations over the period from June 2011 to March 2016. The company's ROE decreased from 20.12% in June 2011 to 8.03% in March 2016.
There was a noticeable decline in ROE from June 2011 to March 2012, which could be a cause for concern as it dropped from 20.12% to 12.47%. This decrease indicates that the company may not be efficiently utilizing its equity to generate profits during this period.
Another significant drop in ROE was observed from June 2013 to September 2013, as it decreased from 9.77% to 13.90%. However, there was a subsequent increase in the fourth quarter of 2013, with ROE rising to 14.96%, indicating improved performance in that period.
Overall, the downward trend in ROE from its peak of 20.12% in June 2011 to 8.03% in March 2016 suggests that SanDisk Corp may be facing challenges in generating profits relative to its shareholders' equity. This decline could be a red flag for investors and stakeholders, signaling a potential decrease in the company's profitability and efficiency in utilizing its equity. Further analysis and investigation into the company's financial strategies and operational performance are recommended to address these concerns.