Sonos Inc (SONO)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -38,146 | -10,274 | 67,383 | 158,595 | -20,115 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 518,657 | 560,513 | 569,042 | 297,839 |
| ROE | -8.90% | -1.98% | 12.02% | 27.87% | -6.75% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-38,146K ÷ $428,620K
= -8.90%
The return on equity (ROE) for Sonos Inc has fluctuated over the past five years. In 2020, the company experienced a negative ROE of -6.75%, indicating that its net income was insufficient to generate a positive return for shareholders. However, the ROE improved significantly in 2021 to 27.87%, reflecting a strong performance in generating profits relative to shareholders' equity.
Subsequently, in 2022, Sonos Inc maintained a healthy ROE of 12.02%, which suggests that the company continued to efficiently utilize its equity to generate returns. However, the ROE declined in 2023 to -1.98%, indicating a decrease in profitability or potentially issues with managing the company's equity effectively.
The most recent data for Sep 30, 2024, shows a further decrease in ROE to -8.90%, signaling a significant decline in the company's ability to generate profits relative to shareholder's equity. This negative trend in ROE over the last two years may raise concerns about the company's financial performance and efficiency in utilizing equity to create value for shareholders.
Peer comparison
Sep 30, 2024