Enovis Corp (ENOV)
Return on equity (ROE)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | -825,494 | -33,261 | -38,189 | 98,693 | 64,082 |
Total stockholders’ equity | US$ in thousands | 2,562,260 | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 |
ROE | -32.22% | -0.97% | -1.11% | 2.14% | 1.81% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-825,494K ÷ $2,562,260K
= -32.22%
The return on equity (ROE) of Enovis Corp has exhibited considerable volatility over the past five years. In December 2020, the ROE stood at a modest 1.81%, which increased slightly to 2.14% by December 2021. However, in the subsequent years, there was a significant decline in ROE, with negative values recorded for December 2022 (-1.11%), December 2023 (-0.97%), and a substantial drop to -32.22% by December 2024.
These negative ROE figures indicate that the company is generating a loss in relation to its equity. A persistently low or negative ROE can be concerning for shareholders and potential investors as it suggests that the company is not effectively utilizing its equity to generate profits.
Enovis Corp should closely evaluate the factors contributing to its declining ROE, such as profitability, asset utilization, or leverage, to identify areas for improvement and take necessary corrective actions to enhance its financial performance and restore investor confidence.
Peer comparison
Dec 31, 2024