Globus Medical (GMED)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 102,984 | 122,873 | 190,169 | 149,191 | 102,285 |
| Total assets | US$ in thousands | 5,251,750 | 5,086,080 | 2,076,130 | 1,957,260 | 1,679,480 |
| ROA | 1.96% | 2.42% | 9.16% | 7.62% | 6.09% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $102,984K ÷ $5,251,750K
= 1.96%
Based on the data provided, Globus Medical's return on assets (ROA) has shown mixed performance over the years. In December 2020, the ROA was 6.09%, which increased to 7.62% by December 2021, indicating improved efficiency in generating profits from its assets. The company's ROA further rose to 9.16% by December 2022, reflecting a substantial increase in profitability relative to its asset base.
However, there was a noticeable decline in ROA to 2.42% by December 2023, which may suggest a decrease in the company's ability to generate earnings from its assets efficiently. This downward trend continued as the ROA dropped to 1.96% by December 2024, indicating a further decline in the company's asset utilization and profitability.
Overall, the fluctuation in Globus Medical's ROA over the years suggests varying levels of effectiveness in generating returns from its assets. It is essential for the company to closely monitor and analyze the factors contributing to the changes in ROA to maintain or improve its profitability and operational efficiency in the future.
Peer comparison
Dec 31, 2024