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.


Peer comparison

Dec 31, 2023