Return on Equity (ROE)
since 2010
Calculation
NXP Semiconductors N.V., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to stockholders1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 28.66% | = | 100 | × | 1,871) | ÷ | 6,528) |
| Dec 31, 2020 | 0.58% | = | 100 | × | 52) | ÷ | 8,944) |
| Dec 31, 2019 | 2.57% | = | 100 | × | 243) | ÷ | 9,441) |
| Dec 31, 2018 | 21.02% | = | 100 | × | 2,208) | ÷ | 10,505) |
| Dec 31, 2017 | 16.37% | = | 100 | × | 2,215) | ÷ | 13,527) |
| Dec 31, 2016 | 1.83% | = | 100 | × | 200) | ÷ | 10,935) |
| Dec 31, 2015 | 13.25% | = | 100 | × | 1,526) | ÷ | 11,515) |
| Dec 31, 2014 | 100.19% | = | 100 | × | 539) | ÷ | 538) |
| Dec 31, 2013 | 26.75% | = | 100 | × | 348) | ÷ | 1,301) |
| Dec 31, 2012 | -10.96% | = | 100 | × | (115) | ÷ | 1,049) |
| Dec 31, 2011 | 34.06% | = | 100 | × | 390) | ÷ | 1,145) |
| Dec 31, 2010 | -46.25% | = | 100 | × | (456) | ÷ | 986) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 US$ in millions
The analysis of return on equity (ROE) between 2010 and 2021 reveals a period of extreme volatility characterized by significant fluctuations in both net income and the equity base. The ROE metric has transitioned through multiple cycles of contraction and expansion, reflecting varying levels of capital efficiency and profitability.
- Early Period Volatility (2010–2014)
- The initial phase is marked by instability, with ROE swinging from a deficit of -46.25% in 2010 to a peak of 100.19% in 2014. The 2014 surge was primarily driven by a substantial decrease in stockholders' equity to 538 million US$, which significantly amplified the return relative to the equity base during that period.
- Equity Expansion and Stabilization (2015–2018)
- A structural shift occurred in 2015 when stockholders' equity increased sharply to over 11.5 billion US$. This massive expansion of the equity base exerted a downward pressure on the ROE percentage, normalizing it to 13.25% in 2015. Despite a dip to 1.83% in 2016, a recovery trend followed, with ROE climbing to 21.02% by 2018, supported by consistently high net income figures exceeding 2.2 billion US$.
- Recent Contraction and Recovery (2019–2021)
- A significant decline in profitability is observed between 2019 and 2020, where ROE plummeted to 2.57% and 0.58%, respectively. This decline coincided with a sharp drop in net income attributable to stockholders, which reached a low of 52 million US$ in 2020. However, a strong rebound is evident in 2021, with ROE rising to 28.66%, driven by a recovery in net income to 1.87 billion US$ and a simultaneous reduction in total stockholders' equity to 6.53 billion US$.
Overall, the long-term trend indicates that while profitability has generally improved since 2010, the ROE has been heavily influenced by aggressive changes in the equity structure and cyclical swings in net income. The most recent data suggests a return to high capital efficiency as the equity base contracted while earnings recovered.
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Comparison to Competitors
NXP Semiconductors N.V., ROE, long-term trends, comparison to competitors
| NXP Semiconductors N.V. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 28.66% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | -3.29% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 0.58% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 18.26% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | 2.57% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | -2.45% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | 21.02% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 12.58% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | 16.37% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 0.53% | 27.33% | 28.91% | 8.02% | 35.62% |
| Dec 31, 2016 | 1.83% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -19.60% | -2.28% | 13.74% | 17.95% | 34.33% |
| Dec 31, 2015 | 13.25% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | 100.19% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 6.74% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | 26.75% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 6.84% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | -10.96% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | 12.27% | -13.40% | 14.02% | 18.22% | 16.05% |
| Dec 31, 2011 | 34.06% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 16.37% | 1.97% | 7.96% | 15.81% | 20.42% |
| Dec 31, 2010 | -46.25% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 8.00% | 23.07% | -2.55% | 15.57% | 30.93% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
NXP Semiconductors N.V., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| NXP Semiconductors N.V. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2021 | 28.66% | 24.91% |
| Dec 31, 2020 | 0.58% | 24.28% |
| Dec 31, 2019 | 2.57% | 25.76% |
| Dec 31, 2018 | 21.02% | 32.95% |
| Dec 31, 2017 | 16.37% | 16.60% |
| Dec 31, 2016 | 1.83% | 12.61% |
| Dec 31, 2015 | 13.25% | 18.69% |
| Dec 31, 2014 | 100.19% | 19.37% |
| Dec 31, 2013 | 26.75% | 15.49% |
| Dec 31, 2012 | -10.96% | 14.85% |
| Dec 31, 2011 | 34.06% | 21.32% |
| Dec 31, 2010 | -46.25% | 20.49% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Comparison to Industry (Information Technology)
NXP Semiconductors N.V., ROE, long-term trends, comparison to industry (information technology)
| NXP Semiconductors N.V. | Information Technology | |
|---|---|---|
| Dec 31, 2021 | 28.66% | 41.64% |
| Dec 31, 2020 | 0.58% | 35.38% |
| Dec 31, 2019 | 2.57% | 35.94% |
| Dec 31, 2018 | 21.02% | 30.23% |
| Dec 31, 2017 | 16.37% | 23.19% |
| Dec 31, 2016 | 1.83% | 23.00% |
| Dec 31, 2015 | 13.25% | 25.97% |
| Dec 31, 2014 | 100.19% | 25.43% |
| Dec 31, 2013 | 26.75% | 24.73% |
| Dec 31, 2012 | -10.96% | 26.09% |
| Dec 31, 2011 | 34.06% | 29.03% |
| Dec 31, 2010 | -46.25% | 27.62% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).