Globus Medical (GMED)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	122,873	190,169	149,191	102,285	155,210
Total assets	US$ in thousands	5,086,080	2,076,130	1,957,260	1,679,480	1,532,080
ROA		2.42%	9.16%	7.62%	6.09%	10.13%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $122,873K ÷ $5,086,080K
= 2.42%

The return on assets (ROA) of Globus Medical Inc has exhibited fluctuations over the past five years. In 2023, the ROA decreased to 2.42% from 9.16% in 2022, marking a significant decline. This may indicate a lower ability of the company to generate profits from its assets during the period. However, compared to 2020 and 2021, the ROA in 2023 is still positive.

In 2022, Globus Medical Inc achieved a relatively high ROA of 9.16%, showing its ability to generate profit from its assets. This improvement from the previous year could suggest better asset utilization or improved efficiency in managing the company's resources.

Similarly, in 2021 and 2020, the company's ROA was 7.62% and 6.09% respectively, demonstrating consistent profitability in utilizing its assets to generate earnings. These values indicate the company's ability to generate adequate returns from its investments in assets.

In contrast, the ROA was notably higher in 2019 at 10.13%, indicating a particularly strong performance in that year in terms of utilizing assets to generate profits. This may suggest effective management strategies or favorable market conditions during that period.

Overall, the trend in Globus Medical Inc's ROA over the past five years shows fluctuations in profitability from asset utilization. It would be important to further analyze the company's underlying financial performance and operational efficiency to understand the reasons behind these fluctuations.