Globus Medical (GMED)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	214,623	164,471	116,777	118,864	133,142	177,047	236,345	237,909	227,951	192,123	185,750	163,850	171,953	212,288	208,972	137,533	111,433	102,878	94,926	163,358
Total assets	US$ in thousands	5,251,750	5,086,040	4,993,790	4,943,610	5,086,080	5,355,880	2,212,460	2,149,620	2,076,130	1,976,510	1,914,710	1,998,690	1,957,260	1,910,580	1,830,210	1,737,890	1,679,480	1,541,740	1,465,800	1,479,360
Operating ROA		4.09%	3.23%	2.34%	2.40%	2.62%	3.31%	10.68%	11.07%	10.98%	9.72%	9.70%	8.20%	8.79%	11.11%	11.42%	7.91%	6.63%	6.67%	6.48%	11.04%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $214,623K ÷ $5,251,750K
= 4.09%

The operating return on assets (operating ROA) for Globus Medical has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. Starting at 11.04% in March 2020, the operating ROA declined to 6.48% by June 2020 before gradually increasing to a peak of 11.42% in June 2021.

Subsequently, there was some fluctuation in the operating ROA figures, with values around the 8-10% range until September 2023. However, there was a significant decrease in the operating ROA to 2.62% by December 2023, and this trend continued with values of 2.40% and 2.34% in March and June 2024, respectively.

There was a slight improvement in the operating ROA to 4.09% by December 2024. It is important for the company to closely monitor and analyze the factors influencing these fluctuations in operating ROA to ensure sustainable profitability and efficiency in asset utilization.