Globus Medical (GMED)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,177,330 | 3,997,960 | 1,846,370 | 1,741,390 | 1,506,300 |
| ROE | 2.47% | 3.07% | 10.30% | 8.57% | 6.79% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $102,984K ÷ $4,177,330K
= 2.47%
The return on equity (ROE) for Globus Medical has shown varying trends over the years based on the provided data. In December 31, 2020, the ROE was at 6.79%, indicating the company generated a return of 6.79% on shareholders' equity for that year. Subsequently, it increased to 8.57% by December 31, 2021, reflecting an improvement in the company's profitability.
By December 31, 2022, the ROE further rose to 10.30%, reaching its peak during the period under review. This suggests that the company effectively utilized shareholders' equity to generate profits during that year. However, there was a significant decline in performance by December 31, 2023, with the ROE plummeting to 3.07%.
Moreover, the trend continued to deteriorate as the ROE dropped even further to 2.47% by December 31, 2024. This decline indicates a decrease in the company's ability to generate returns on shareholders' equity, which may warrant further investigation into factors impacting profitability and efficiency. Overall, the fluctuating trend in ROE portrays the company's varying performance levels in leveraging shareholder investments to generate profits over the years.
Peer comparison
Dec 31, 2024