3D Systems Corporation (DDD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-362,688	-122,711	322,052	-149,594	-69,880
Total stockholders’ equity	US$ in thousands	428,759	751,704	842,381	430,723	522,159
ROE		-84.59%	-16.32%	38.23%	-34.73%	-13.38%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-362,688K ÷ $428,759K
= -84.59%

The return on equity (ROE) for 3D Systems Corporation has shown significant fluctuations over the past five years.

In 2019, the ROE was negative at -13.38%, indicating that the company did not generate attractive returns for its shareholders relative to their equity investment.

In 2020, the ROE deteriorated further to -34.73%, showing a worsening performance in utilizing shareholder equity to generate profits.

However, in 2021, there was a notable improvement in the ROE to 38.23%, indicating a sharp turnaround in the company's ability to generate returns for its shareholders.

This positive trend was short-lived as the ROE declined sharply in 2022 to -16.32%, signifying a decrease in profitability and efficiency in using shareholder equity to generate earnings.

The most recent ROE figure for 2023 of -84.59% portrays a significant decrease, raising concerns about the company's ability to effectively generate returns for its shareholders in the most recent period.

Overall, the fluctuating ROE figures suggest that 3D Systems Corporation has experienced challenges in consistently delivering profitability and efficient use of shareholder equity over the past five years.Further analysis is necessary to understand the underlying reasons for these fluctuations and to assess the company's future prospects.