Artivion Inc (AORT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -13,359 | -30,690 | -19,192 | -14,834 | -16,682 |
| Total stockholders’ equity | US$ in thousands | 276,200 | 281,780 | 284,329 | 300,728 | 328,713 |
| ROE | -4.84% | -10.89% | -6.75% | -4.93% | -5.07% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-13,359K ÷ $276,200K
= -4.84%
Based on the provided data, Artivion Inc's return on equity (ROE) has been consistently negative over the past five years. The ROE percentages for each year are as follows: -5.07% in December 31, 2020; -4.93% in December 31, 2021; -6.75% in December 31, 2022; -10.89% in December 31, 2023; and -4.84% in December 31, 2024.
A negative ROE typically indicates that the company is not generating enough profits from its shareholders' equity, which may be a cause for concern. It suggests that Artivion Inc's net income is insufficient to provide a satisfactory return to its equity holders.
The declining trend in ROE over the years may indicate operational inefficiencies, declining profitability, or other internal issues within the company. Investors and stakeholders may view this trend negatively as it signifies a decreasing ability of the company to generate returns on its equity investments.
It is essential for Artivion Inc to investigate the reasons behind the consistently negative ROE and implement strategic measures to improve profitability, operational efficiency, and overall performance to enhance shareholder value in the future.
Peer comparison
Dec 31, 2024