Hologic Inc (HOLX)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 456,000 | 1,302,000 | 1,871,500 | 1,115,200 | -203,600 |
| Total stockholders’ equity | US$ in thousands | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 | 2,115,700 |
| ROE | 9.09% | 26.70% | 44.36% | 41.22% | -9.62% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $456,000K ÷ $5,016,900K
= 9.09%
The return on equity (ROE) of Hologic, Inc. has exhibited significant fluctuations over the past five years. The ROE decreased from 44.36% in 2021 to 9.09% in 2023, reflecting a substantial decline in the company's ability to generate profits from shareholders' equity. This decrease may raise concerns among investors and stakeholders regarding the company's profitability and efficient utilization of its equity capital.
The exceptionally high ROE of 44.36% in 2021 indicated that the company was effectively generating profits from its shareholders' equity. However, the sharp decline in 2023 suggests a potential decrease in the company's profitability or a significant increase in shareholder equity. Further analysis of the company's financial statements and operations is necessary to identify the specific factors contributing to this decline in ROE.
Additionally, the negative ROE of -9.62% in 2019 indicates that the company experienced a net loss relative to its equity during that period. It is essential to investigate the underlying causes of this negative ROE and assess whether the company has since implemented corrective measures to improve its profitability and financial performance.
Overall, the fluctuating trend in Hologic, Inc.'s ROE highlights the importance of closely monitoring the company's financial performance, profitability, and efficiency in utilizing shareholders' equity to create value.
Peer comparison
Sep 30, 2023