Wolfspeed Inc (WOLF)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	-864,200	-802,600	-753,200	-699,400	-329,900	-184,200	-151,200	-157,000	-200,900	-380,900	-423,300	-409,600	-523,900	-415,800	-367,000	-338,300	-191,700	-285,900	-453,600	-401,800
Total stockholders’ equity	US$ in thousands	882,100	1,022,600	1,150,200	1,245,700	1,621,900	1,706,800	1,780,200	2,109,600	2,439,300	2,390,400	2,378,900	2,039,400	2,116,500	2,247,000	1,864,900	1,908,700	2,083,100	1,939,500	1,991,200	2,020,600
ROE		-97.97%	-78.49%	-65.48%	-56.15%	-20.34%	-10.79%	-8.49%	-7.44%	-8.24%	-15.93%	-17.79%	-20.08%	-24.75%	-18.50%	-19.68%	-17.72%	-9.20%	-14.74%	-22.78%	-19.89%

June 30, 2024 calculation

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

Wolfspeed Inc's return on equity (ROE) has shown significant fluctuations over the past few quarters. The ROE has ranged from a low of -97.97% in June 2024 to a high of -7.44% in September 2022.

The negative ROE figures indicate that Wolfspeed's net income is not sufficient to cover its shareholders' equity, reflecting potential financial distress or operational inefficiencies. The downward trend in ROE from 2019 to the present suggests deteriorating profitability and shareholder value creation.

To improve ROE, Wolfspeed may need to focus on enhancing operational efficiency, reducing costs, increasing revenue generation, or optimizing its capital structure. It is essential for the company to address the underlying factors contributing to the negative ROE trend to sustain long-term financial viability and enhance investor confidence.