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MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) ROE % : 5.08% (As of Dec. 2023)


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What is MACOM Technology Solutions Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MACOM Technology Solutions Holdings's annualized net income for the quarter that ended in Dec. 2023 was $50.1 Mil. MACOM Technology Solutions Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $985.8 Mil. Therefore, MACOM Technology Solutions Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 5.08%.

The historical rank and industry rank for MACOM Technology Solutions Holdings's ROE % or its related term are showing as below:

MTSI' s ROE % Range Over the Past 10 Years
Min: -78.12   Med: -3.06   Max: 66.94
Current: 8.03

During the past 13 years, MACOM Technology Solutions Holdings's highest ROE % was 66.94%. The lowest was -78.12%. And the median was -3.06%.

MTSI's ROE % is ranked better than
62.72% of 979 companies
in the Semiconductors industry
Industry Median: 4.44 vs MTSI: 8.03

MACOM Technology Solutions Holdings ROE % Historical Data

The historical data trend for MACOM Technology Solutions Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MACOM Technology Solutions Holdings ROE % Chart

MACOM Technology Solutions Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -78.12 -15.01 9.84 66.94 10.23

MACOM Technology Solutions Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.85 11.73 5.24 10.50 5.08

Competitive Comparison of MACOM Technology Solutions Holdings's ROE %

For the Semiconductors subindustry, MACOM Technology Solutions Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MACOM Technology Solutions Holdings's ROE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where MACOM Technology Solutions Holdings's ROE % falls into.



MACOM Technology Solutions Holdings ROE % Calculation

MACOM Technology Solutions Holdings's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=91.577/( (842.748+947.6)/ 2 )
=91.577/895.174
=10.23 %

MACOM Technology Solutions Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=50.104/( (947.6+1024.091)/ 2 )
=50.104/985.8455
=5.08 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


MACOM Technology Solutions Holdings  (NAS:MTSI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=50.104/985.8455
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(50.104 / 628.592)*(628.592 / 1602.023)*(1602.023 / 985.8455)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.97 %*0.3924*1.625
=ROA %*Equity Multiplier
=3.13 %*1.625
=5.08 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=50.104/985.8455
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (50.104 / 61.104) * (61.104 / 44.04) * (44.04 / 628.592) * (628.592 / 1602.023) * (1602.023 / 985.8455)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.82 * 1.3875 * 7.01 % * 0.3924 * 1.625
=5.08 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


MACOM Technology Solutions Holdings ROE % Related Terms

Thank you for viewing the detailed overview of MACOM Technology Solutions Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Business Description

Traded in Other Exchanges
Address
100 Chelmsford Street, Lowell, MA, USA, 01851
MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.
Executives
Robert Dennehy officer: SVP, Operations 100 CHELMSFORD STREET, LOWELL MA 01851
Stephen G Daly director 100 CHELMSFORD STREET, LOWELL MA 01851
Douglas J Carlson officer: SVP & GM, RF & Microwave MACOM TECHNOLOGY SOLUTIONS HOLDINGS INC., 100 CHELMSFORD ST., LOWELL MA 01851
Dong Hyun Hwang officer: SVP, Global Sales 100 CHELMSFORD STREET, LOWELL MA 01851
John Kober officer: Senior VP and CFO MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC, 100 CHELMSFORD STREET, LOWELL MA 01851
Ambra R. Roth officer: SVP, GC, HR & Secretary C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
John L Ocampo director, 10 percent owner, officer: Chairman 100 CHELMSFORD STREET, LOWELL MA 01851
Geoffrey G Ribar director
Wayne Mack Struble officer: SVP, Advanced Semiconductor C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Jihye Whang Rosenband director C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Peter Y Chung director, other: Indirect GP of 10% Owner C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLR, BOSTON MA 02116
Charles R Bland director
John Ritchie director 303 VELOCITY WAY, FOSTER CITY X1 94404
Hegarty Conor Noel officer: PFO and PAO C/O MACOM TECHNOLOGY SOLUTIONS HOLDINGS, 100 CHELMSFORD STREET, LOWELL MA 01851
Vivek Rajgarhia officer: SVP & GM, Lightwave MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC, 100 CHELMSFORD ST., LOWELL MA 01851