IDEXX Laboratories Inc (IDXX)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 887,867 866,239 845,629 866,567 845,042 822,728 791,435 699,178 679,089 669,653 663,950 734,553 744,845 756,864 727,848 674,206 581,776 497,482 460,100 436,866
Total stockholders’ equity US$ in thousands 1,595,310 1,618,050 1,580,250 1,568,910 1,484,530 1,297,410 1,093,860 841,101 608,737 475,999 457,008 639,798 689,992 754,754 747,460 702,696 632,088 440,576 272,963 107,674
ROE 55.65% 53.54% 53.51% 55.23% 56.92% 63.41% 72.35% 83.13% 111.56% 140.68% 145.28% 114.81% 107.95% 100.28% 97.38% 95.95% 92.04% 112.92% 168.56% 405.73%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $887,867K ÷ $1,595,310K
= 55.65%

IDEXX Laboratories Inc's Return on Equity (ROE) has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024. The ROE stood at an exceptionally high level of 405.73% as of March 31, 2020, indicating robust profitability generated for every dollar of shareholders' equity. Subsequently, the ROE decreased but remained relatively high for the next few quarters, demonstrating consistent profitability.

The ROE peaked again at 145.28% on June 30, 2022, before fluctuating downwards to 53.54% on September 30, 2024. This decrease in ROE could suggest either a decline in net income or an increase in shareholders' equity, impacting the overall return generated for shareholders.

The downward trend continued, with the ROE standing at 55.65% as of December 31, 2024. It is important to note that while a high ROE is generally favorable as it reflects the company's efficiency in generating profits from shareholders' investments, a sustained decline in ROE may indicate potential issues in profitability or a lesser ability to generate returns on equity. Further analysis of IDEXX Laboratories Inc's financial performance and operational efficiency is recommended to understand the underlying reasons for the fluctuating ROE levels.