Globus Medical (GMED)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	102,984	91,513	40,675	66,627	122,873	157,904	204,337	201,215	190,170	155,211	154,991	141,946	149,191	187,042	184,047	121,665	102,285	94,857	88,948	147,948
Total stockholders’ equity	US$ in thousands	4,177,330	4,069,400	3,976,360	3,922,360	3,997,960	4,187,280	1,985,060	1,914,820	1,846,370	1,764,110	1,699,090	1,785,370	1,741,390	1,718,270	1,639,270	1,562,990	1,506,300	1,417,200	1,336,920	1,363,370
ROE		2.47%	2.25%	1.02%	1.70%	3.07%	3.77%	10.29%	10.51%	10.30%	8.80%	9.12%	7.95%	8.57%	10.89%	11.23%	7.78%	6.79%	6.69%	6.65%	10.85%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $102,984K ÷ $4,177,330K
= 2.47%

Over the past few years, Globus Medical has shown fluctuations in its Return on Equity (ROE) from as high as 11.23% in June 2021 to as low as 1.02% in June 2024. The general trend has been a gradual decrease in ROE from 2019 to 2024. The ROE decreased from 10.85% in March 2020 to 2.47% in December 2024. This declining trend may raise concerns about the company's ability to generate profits from shareholders' equity.

It is essential for investors and stakeholders to closely monitor these fluctuations as the ROE indicates how efficiently the company is utilizing its equity to generate profits. A declining ROE could suggest operational inefficiencies, increased debt levels, or declining profitability. Further analysis of the company's financial and operational performance would be necessary to identify the specific factors driving the changes in ROE and to assess the company's overall financial health and sustainability.