Globus Medical (GMED)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,997,960 | 1,846,370 | 1,741,390 | 1,506,300 | 1,402,450 |
| ROE | 3.07% | 10.30% | 8.57% | 6.79% | 11.07% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $122,873K ÷ $3,997,960K
= 3.07%
The return on equity (ROE) for Globus Medical Inc has shown fluctuations over the past five years. In 2023, the ROE decreased sharply to 3.07%, representing a significant decline from the previous year's level of 10.30%. This indicates a decrease in the company's ability to generate profits from its shareholders' equity in the most recent period.
Comparing to the trend over the five-year period, the ROE was relatively stable between 2019 and 2022, with values ranging from 6.79% to 11.07%. The higher ROE values in 2022 and 2019 suggest that the company was more efficient in utilizing its equity to generate profits during those years. However, the ROE in 2021 and 2020 was slightly lower, indicating potentially less effective utilization of equity during those periods.
Overall, the recent decrease in ROE for Globus Medical Inc in 2023 may raise concerns about the company's profitability and efficiency in generating returns for its shareholders. Further analysis of the company's financial performance and strategies may be warranted to identify the factors contributing to the decline in ROE and to assess the company's future prospects.
Peer comparison
Dec 31, 2023