Bio-Rad Laboratories Inc (BIO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,844,200 | -637,324 | -3,627,540 | 4,254,260 | 3,814,230 |
| Total stockholders’ equity | US$ in thousands | 6,569,300 | 8,741,130 | 9,615,250 | 13,667,100 | 9,879,940 |
| ROE | -28.07% | -7.29% | -37.73% | 31.13% | 38.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,844,200K ÷ $6,569,300K
= -28.07%
Over the period from December 31, 2020, to December 31, 2024, Bio-Rad Laboratories Inc's return on equity (ROE) exhibited fluctuations. The ROE stood at a strong 38.61% on December 31, 2020. However, in the subsequent years, the ROE showed a declining trend. By December 31, 2021, it had decreased to 31.13%. This decline continued in the following years, with the ROE turning negative, notably at -37.73% on December 31, 2022.
The negative trend persisted with the ROE reaching its lowest point of -28.07% on December 31, 2024. Negative ROE values imply that the company's net income was insufficient to cover its shareholders' equity, indicating potential financial challenges or inefficiencies in the company's operations. It is crucial for Bio-Rad Laboratories Inc to address the factors contributing to the deteriorating ROE to enhance its profitability and shareholder value in the future.
Peer comparison
Dec 31, 2024