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