Wolfspeed Inc (WOLF)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	-864,200	-329,900	-200,900	-523,900	-191,700
Total stockholders’ equity	US$ in thousands	882,100	1,621,900	2,439,300	2,116,500	2,083,100
ROE		-97.97%	-20.34%	-8.24%	-24.75%	-9.20%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-864,200K ÷ $882,100K
= -97.97%

Wolfspeed Inc's return on equity (ROE) has experienced significant fluctuations over the past five years. The ROE dropped to -97.97% in Jun 30, 2024, reflecting a substantial decline compared to the previous year. This negative ROE indicates that the company's net income is not sufficient to cover shareholders' equity, raising concerns about the company's profitability and efficiency in generating returns for shareholders.

In Jun 30, 2023, the ROE was -20.34%, showing some improvement from the previous year but still remaining in negative territory. The ROE improved further to -8.24% in Jun 30, 2022, suggesting the company made progress in utilizing its equity more effectively to generate returns, although it remained below the industry average.

However, in Jun 30, 2021, the ROE deteriorated to -24.75%, indicating a decline in profitability and efficiency. The company's ROE was negative for consecutive years, showing challenges in generating profits relative to shareholders' equity.

In Jun 30, 2020, the ROE was -9.20%, reflecting an improvement from the previous year but still indicating that the company's profitability and efficiency levels were not optimal.

Overall, Wolfspeed Inc's ROE performance has been volatile and consistently negative in recent years, indicating the company's struggles in generating returns on the equity invested by shareholders. Management may need to focus on enhancing operational efficiency, increasing profitability, and better utilizing resources to improve ROE in the future.