Globus Medical (GMED)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	94,858	88,949	147,949	155,210	146,431	143,332	150,146
Total stockholders’ equity	US$ in thousands	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	1,402,450	1,338,800	1,287,530	1,237,210
ROE		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%	11.07%	10.94%	11.13%	12.14%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $122,873K ÷ $3,997,960K
= 3.07%

To analyze the return on equity (ROE) of Globus Medical Inc, we observe that the ROE fluctuated over the past eight quarters. In Q1 2022, the ROE was 7.95%, which then increased to 9.12% in Q2 2022 and further to 8.80% in Q3 2022. Subsequently, in Q4 2022, the ROE rose to 10.30% and remained relatively stable in the range of 10% in Q1 and Q2 2023.

However, there was a slight decrease in Q3 2023 to 3.77% followed by a further decline to 3.07% in Q4 2023. This downward trend in the ROE in the latest quarters might indicate a potential concern in the company's profitability and efficiency in generating returns for its shareholders.

It would be crucial for stakeholders to further investigate the factors contributing to the decline in ROE to assess the company's overall financial health and identify strategies to improve profitability and enhance shareholder value.