GE HealthCare Technologies Inc. (GEHC)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,568,000 | 1,719,000 | |||
| Total stockholders’ equity | US$ in thousands | 7,133,000 | 7,131,000 | 7,102,000 | 6,690,000 | 9,357,000 |
| ROE | 21.98% | 24.11% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,568,000K ÷ $7,133,000K
= 21.98%
Based on the data provided, the return on equity (ROE) of GE HealthCare Technologies Inc. has shown a fluctuating trend over the past year. The ROE as of December 31, 2023, is 21.98%, which indicates that for every dollar of shareholders' equity, the company generated a profit of approximately 21.98 cents. This represents a slight decrease from the ROE of 24.11% reported on September 30, 2023.
The declining trend in ROE may raise concerns about the company's profitability and efficiency in utilizing its shareholders' equity to generate earnings. It is essential for the company to analyze the factors contributing to this decline and take appropriate measures to improve its ROE going forward.
A comprehensive analysis of the company's financial performance, management effectiveness, operational efficiency, and competitive positioning is necessary to fully understand the drivers behind the ROE fluctuations and to develop strategies to enhance shareholder value in the long term.
Peer comparison
Dec 31, 2023