Sensata Technologies Holding NV (ST)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands -24,880,489 -25,088,514 8,287 -14,305 -3,909 311,479 388,931 374,661 310,685 309,507 254,213 332,288 363,580 373,275 365,045 209,588 164,286 96,157 90,103 206,080
Total stockholders’ equity US$ in thousands 2,890,440 2,957,770 3,011,550 2,974,830 2,996,280 3,225,180 3,209,770 3,193,490 3,110,810 3,069,320 3,023,580 3,072,320 3,094,730 3,009,620 2,913,450 2,790,640 2,705,490 2,574,640 2,493,400 2,537,800
ROE -860.79% -848.22% 0.28% -0.48% -0.13% 9.66% 12.12% 11.73% 9.99% 10.08% 8.41% 10.82% 11.75% 12.40% 12.53% 7.51% 6.07% 3.73% 3.61% 8.12%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-24,880,489K ÷ $2,890,440K
= -860.79%

Sensata Technologies Holding NV's return on equity (ROE) has shown fluctuations over the analyzed period, varying from as low as -860.79% in December 2024 to a peak of 12.53% in June 2021. The ROE is a metric used to evaluate a company's profitability by assessing how effectively it is utilizing its equity to generate profits.

The upward trend observed from June 2021 to March 2023 indicates an improvement in the company's ability to generate returns for shareholders. However, a significant decline in ROE from September 2023 to December 2024 raises concerns, with the ratio even turning negative in the last quarters of 2023 and into 2024.

The drastic negative ROE percentages in the latter half of 2024 may suggest potential issues such as high debt levels or operational inefficiencies impacting profitability and shareholder returns. This trend warrants a closer examination to identify the root causes and implement corrective measures to improve the company's financial performance and return on equity.