Return on Equity (ROE)
since 2015
Calculation
Lumentum Holdings Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jun 28, 2025 | 2.28% | = | 100 | × | 25,900) | ÷ | 1,134,700) |
| Jun 29, 2024 | -57.09% | = | 100 | × | (546,500) | ÷ | 957,300) |
| Jul 1, 2023 | -9.71% | = | 100 | × | (131,600) | ÷ | 1,355,800) |
| Jul 2, 2022 | 10.61% | = | 100 | × | 198,900) | ÷ | 1,875,000) |
| Jul 3, 2021 | 20.14% | = | 100 | × | 397,300) | ÷ | 1,972,800) |
| Jun 27, 2020 | 7.75% | = | 100 | × | 135,500) | ÷ | 1,749,200) |
| Jun 29, 2019 | -2.43% | = | 100 | × | (36,400) | ÷ | 1,497,100) |
| Jun 30, 2018 | 26.79% | = | 100 | × | 248,100) | ÷ | 926,100) |
| Jul 1, 2017 | -16.56% | = | 100 | × | (102,500) | ÷ | 618,800) |
| Jul 2, 2016 | 1.87% | = | 100 | × | 9,300) | ÷ | 497,400) |
| Jun 27, 2015 | -0.89% | = | 100 | × | (3,400) | ÷ | 380,700) |
Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27).
1 US$ in thousands
The return on equity (ROE) exhibited significant volatility between 2015 and 2025. Initial observations reveal periods of negative ROE interspersed with substantial positive returns, indicating inconsistent profitability relative to shareholder equity.
- Initial Period (2015-2017)
- In 2015, the ROE was negative at -0.89%, reflecting a net loss for the period. A positive ROE of 1.87% was recorded in 2016, suggesting improved profitability. However, 2017 experienced a substantial decline, with ROE falling to -16.56%, driven by a significant net loss. This period demonstrates considerable instability in profitability.
- Recovery and Peak (2018-2021)
- A marked recovery occurred in 2018, with ROE reaching a peak of 26.79%, coinciding with a substantial increase in net income. This positive trend continued into 2020, with an ROE of 7.75%, and further improved in 2021, reaching 20.14%. This period indicates a successful turnaround and strong profitability relative to equity.
- Subsequent Decline and Volatility (2022-2025)
- The ROE decreased to 10.61% in 2022, followed by a significant negative value of -9.71% in 2023. The most substantial decline occurred in 2024, with ROE plummeting to -57.09%, indicating a substantial net loss relative to equity. A partial recovery is observed in 2025, with ROE rising to 2.28%, though remaining relatively low compared to the peak values observed between 2018 and 2021. This recent period highlights renewed challenges in maintaining profitability.
- Overall Trend
- Over the ten-year period, the ROE demonstrates a lack of consistent positive performance. While periods of strong profitability were achieved, they were followed by significant declines, suggesting vulnerability to external factors or internal challenges. The substantial negative ROE in 2024 is particularly concerning and warrants further investigation.
The fluctuations in ROE appear closely linked to the reported net income, as significant losses consistently resulted in negative or substantially reduced ROE values. The trend in stockholders’ equity generally increased until 2023, but decreased in 2024, which likely exacerbated the negative ROE in that year.
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Comparison to Competitors
Lumentum Holdings Inc., ROE, long-term trends, comparison to competitors
| Lumentum Holdings Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Jun 28, 2025 | 2.28% | 151.91% | 28.39% | 21.73% | — | 16.64% |
| Jun 29, 2024 | -57.09% | 164.59% | 28.54% | 22.70% | — | 21.28% |
| Jul 1, 2023 | -9.71% | 156.08% | 28.91% | 28.44% | — | 32.45% |
| Jul 2, 2022 | 10.61% | 196.96% | 27.68% | 29.70% | — | 20.00% |
| Jul 3, 2021 | 20.14% | 150.07% | 21.13% | 25.66% | 131.10% | 10.20% |
| Jun 27, 2020 | 7.75% | 87.87% | 19.11% | 29.57% | — | 7.91% |
| Jun 29, 2019 | -2.43% | 61.06% | 29.71% | 34.62% | — | 7.64% |
| Jun 30, 2018 | 26.79% | 55.56% | 15.31% | 0.25% | — | 5.47% |
| Jul 1, 2017 | -16.56% | 36.07% | 25.46% | 14.53% | — | 8.64% |
| Jul 2, 2016 | 1.87% | 35.62% | 16.63% | 16.89% | — | 9.99% |
| Jun 27, 2015 | -0.89% | 44.74% | 15.37% | 15.04% | — | 16.46% |
Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27).
Comparison to Sector (Technology Hardware & Equipment)
Lumentum Holdings Inc., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| Lumentum Holdings Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Jun 28, 2025 | 2.28% | 94.58% |
| Jun 29, 2024 | -57.09% | 95.15% |
| Jul 1, 2023 | -9.71% | 100.63% |
| Jul 2, 2022 | 10.61% | 122.76% |
| Jul 3, 2021 | 20.14% | 96.47% |
| Jun 27, 2020 | 7.75% | 68.72% |
| Jun 29, 2019 | -2.43% | 52.95% |
| Jun 30, 2018 | 26.79% | 39.07% |
| Jul 1, 2017 | -16.56% | 28.71% |
| Jul 2, 2016 | 1.87% | 29.20% |
| Jun 27, 2015 | -0.89% | 34.61% |
Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27).
Comparison to Industry (Information Technology)
Lumentum Holdings Inc., ROE, long-term trends, comparison to industry (information technology)
| Lumentum Holdings Inc. | Information Technology | |
|---|---|---|
| Jun 28, 2025 | 2.28% | 34.73% |
| Jun 29, 2024 | -57.09% | 29.28% |
| Jul 1, 2023 | -9.71% | 31.78% |
| Jul 2, 2022 | 10.61% | 38.79% |
| Jul 3, 2021 | 20.14% | 42.14% |
| Jun 27, 2020 | 7.75% | 35.58% |
| Jun 29, 2019 | -2.43% | 36.48% |
| Jun 30, 2018 | 26.79% | 30.38% |
| Jul 1, 2017 | -16.56% | 23.35% |
| Jul 2, 2016 | 1.87% | 23.33% |
| Jun 27, 2015 | -0.89% | 26.15% |
Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-07-01), 10-K (reporting date: 2016-07-02), 10-K (reporting date: 2015-06-27).