IDEXX Laboratories Inc (IDXX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 845,042 | 679,089 | 744,845 | 581,776 | 427,720 |
| Total stockholders’ equity | US$ in thousands | 1,484,530 | 608,737 | 689,992 | 632,088 | 177,473 |
| ROE | 56.92% | 111.56% | 107.95% | 92.04% | 241.01% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $845,042K ÷ $1,484,530K
= 56.92%
Idexx Laboratories, Inc.'s return on equity (ROE) has exhibited some fluctuations over the past five years. The ROE stood at 56.92% at the end of 2023, a decrease from the previous year. Despite this decline, the company's ROE remains relatively high, indicating the efficiency of utilizing shareholder equity to generate profits.
In 2023, the ROE of 56.92% suggests that for every dollar of equity invested by shareholders, Idexx Laboratories generated a profit of approximately $0.57. This metric reflects the company's ability to generate earnings from the capital invested by its shareholders.
Comparing 2023 to previous years, the ROE was significantly lower than the exceptional 241.01% in 2019, but still remains above the levels observed in 2020 and 2021. The downward trend from 2019 to 2023 may indicate shifts in the company's operating efficiency, financial leverage, or profitability.
Overall, while Idexx Laboratories, Inc.'s ROE decreased in 2023, it still reflects a strong performance in generating returns for its shareholders, albeit at a slightly lower rate compared to previous years.
Peer comparison
Dec 31, 2023