TE Connectivity Ltd (TEL)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,193,000 | 1,910,000 | 2,428,000 | 2,261,000 | -241,000 |
| Total stockholders’ equity | US$ in thousands | 12,486,000 | 11,551,000 | 10,897,000 | 10,748,000 | 9,495,000 |
| ROE | 25.57% | 16.54% | 22.28% | 21.04% | -2.54% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,193,000K ÷ $12,486,000K
= 25.57%
TE Connectivity Ltd's return on equity (ROE) has shown fluctuating trends over the past five years. In the latest period ending September 30, 2024, the company achieved an ROE of 25.57%, demonstrating a significant improvement compared to the previous year's 16.54%. This indicates that the company's ability to generate profit from shareholders' equity has strengthened.
In the prior year, ending September 30, 2023, TE Connectivity Ltd experienced an ROE of 16.54%, reflecting a positive performance compared to the year ending September 30, 2022, when the ROE stood at 22.28%. Despite this decline, the company maintained a relatively strong ROE during that period.
Looking back further, the year ending September 30, 2021, saw TE Connectivity Ltd achieve an ROE of 21.04%. This represented a slight decrease from the previous year's performance but still indicated healthy profitability relative to shareholders' equity.
However, there was a significant decrease in ROE for the year ending September 30, 2020, with a negative ROE of -2.54%. This negative result suggests that the company's profitability was insufficient to cover the shareholders' equity during that period.
Overall, TE Connectivity Ltd's ROE performance has shown variability over the analyzed years, with significant improvements in recent years. The positive trend in ROE indicates the company's enhanced efficiency in utilizing shareholders' equity to generate profits, which can be regarded as a positive sign for its financial health and operational efficiency.
Peer comparison
Sep 30, 2024