Applied Optoelectronics Stock

Applied Optoelectronics ROE

The Return on Equity (ROE) of Applied Optoelectronics (AAOI) as of Aug 2, 2026 is -5.21 %. In the previous year, Return on Equity (ROE) was -81.50 % — a change of -93.61% (higher).

ROE

-5.21 %

YoY

-93.61%

Last updated:

In 2026, Applied Optoelectronics's return on equity (ROE) was -5.21 %, a -93.61% increase from the -81.50 % ROE in the previous year.

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Applied Optoelectronics Stock analysis

What does Applied Optoelectronics do? Applied Optoelectronics Inc. is a Texas-based company specializing in the development and manufacturing of optical components and subsystems for communication networks. The company was founded in 1997 by Dr. Thompson Lin. Applied Optoelectronics focuses on four core growth sectors: data centers, telecommunications, CATV, and FTTH networks. The company offers specialized optical components and devices in each of these areas. Its product range includes optical transceivers, VCSELs, transmission equipment, and photodiodes, among others. The company's strong research and development department ensures that it stays up to date with the latest technology and can provide innovative products and solutions to meet market demands. Applied Optoelectronics is one of the most popular companies on Eulerpool.

ROE Details

Decoding Applied Optoelectronics's Return on Equity (ROE)

Applied Optoelectronics's Return on Equity (ROE) is a fundamental metric evaluating the company's profitability relative to its equity. Calculated by dividing net income by shareholder's equity, ROE illustrates how effectively the company is generating profits from shareholders’ investments. A higher ROE represents enhanced efficiency and profitability.

Year-to-Year Comparison

Analyzing Applied Optoelectronics's ROE on a yearly basis aids in tracking its profitability trends and financial performance. An increasing ROE suggests enhanced profitability and value generation for shareholders, whereas a declining ROE may indicate issues in profit generation or equity management.

Impact on Investments

Applied Optoelectronics's ROE is instrumental for investors assessing the company's profitability, efficiency, and investment attractiveness. A robust ROE indicates the firm’s adeptness at converting equity investments into profits, thereby enhancing its appeal to potential and current investors.

Interpreting ROE Fluctuations

Changes in Applied Optoelectronics’s ROE can emanate from variations in net income, equity capital, or both. These fluctuations are scrutinized to evaluate management’s effectiveness, financial strategies, and the inherent risks and opportunities, aiding investors in making informed decisions.

Frequently Asked Questions about Applied Optoelectronics stock

Return on Equity (ROE) of Applied Optoelectronics is -5.21 % in 2026.

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Profitability — Applied Optoelectronics

All Key Metrics — Applied Optoelectronics