Sonos Inc (SONO)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -10,274 | 67,383 | 158,595 | -20,115 | -4,766 |
| Total stockholders’ equity | US$ in thousands | 518,657 | 560,513 | 569,042 | 297,839 | 280,928 |
| ROE | -1.98% | 12.02% | 27.87% | -6.75% | -1.70% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-10,274K ÷ $518,657K
= -1.98%
Certainly, analyzing Sonos Inc's return on equity (ROE) over the past five years, we observe:
1. Sep 30, 2023: -1.98%
2. Oct 1, 2022: 12.02%
3. Oct 2, 2021: 27.87%
4. Oct 3, 2020: -6.75%
5. Sep 28, 2019: -1.70%
The ROE reflects the company's efficiency in generating profits from shareholders' equity. In 2021, Sonos Inc achieved a strong ROE of 27.87%, signifying robust profitability relative to its equity. However, this declined to -1.98% in 2023, indicating a decrease in the company's ability to generate earnings from its equity. The negative ROE in 2023 suggests that the company's net income is insufficient to cover the shareholders' equity, which could raise concerns about its financial health and operational efficiency.
Overall, Sonos Inc's ROE has exhibited fluctuations over the past five years, with notable peaks and troughs. Further analysis of the company's financial performance and operational strategies is warranted to understand the underlying factors contributing to these variations in ROE.
It's important to consider other financial metrics in conjunction with ROE to gain a comprehensive understanding of Sonos Inc's overall financial performance and future prospects.
Peer comparison
Sep 30, 2023