Bio-Rad Laboratories Inc (BIO)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-637,300	-3,627,500	4,254,260	3,814,230	1,758,700
Total stockholders’ equity	US$ in thousands	8,741,130	9,615,250	13,685,200	9,889,690	5,756,840
ROE		-7.29%	-37.73%	31.09%	38.57%	30.55%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-637,300K ÷ $8,741,130K
= -7.29%

Bio-Rad Laboratories Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years.

In 2019, the company achieved an ROE of 30.56%, indicating that for every dollar of shareholders' equity, the company generated a return of approximately 30.56%. This was a strong performance, reflecting efficient utilization of shareholder funds to generate profits.

However, in the following years, the company's ROE experienced a decline. In 2020, the ROE decreased slightly to 38.53%, still demonstrating good profitability but showing a potential slowdown in efficiency.

The trend reversed in 2021 when ROE surged to 31.07%, indicating a return to positive growth in utilizing shareholders' equity effectively. This suggests the company managed to improve its profitability and efficiency during that year.

Yet, in 2022, there was a significant downturn as the ROE plummeted to -37.73%, indicating a negative return on equity, which could be concerning for investors and stakeholders. This decrease could be attributed to various factors such as increased expenses, lower revenues, or poor operational performance.

The downward trend continued in 2023 with an even lower ROE of -7.29%. This negative ROE further highlights the challenges Bio-Rad Laboratories Inc. may be facing in generating profits relative to the shareholders' equity invested in the company.

In conclusion, Bio-Rad Laboratories Inc.'s ROE has been volatile, with both positive and negative fluctuations over the past five years. The company's ability to sustain and improve its ROE in the future will be crucial in demonstrating its profitability and efficiency in utilizing shareholders' equity effectively.