Masimo Corporation (MASI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 81,500 | 143,500 | 229,639 | 240,302 | 196,216 |
| Total stockholders’ equity | US$ in thousands | 1,364,800 | 1,338,900 | 1,550,200 | 1,407,640 | 1,167,870 |
| ROE | 5.97% | 10.72% | 14.81% | 17.07% | 16.80% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $81,500K ÷ $1,364,800K
= 5.97%
Masimo Corporation's Return on Equity (ROE) has shown a declining trend over the past five years. The ROE was 5.97% as of December 31, 2023, compared to 10.72% in 2022, 14.81% in 2021, 17.07% in 2020, and 16.80% in 2019. This decrease indicates that the company's profitability in generating returns from shareholders' equity has weakened. It is essential to investigate the reasons behind this decline in ROE, such as changes in the company's net income, total equity, or asset turnover. A lower ROE may suggest inefficiencies in managing assets or a decrease in profit margins, impacting shareholder value. Further analysis of Masimo Corporation's financial performance and operational efficiency is recommended to identify areas for improvement and enhance shareholder return in the future.
Peer comparison
Dec 31, 2023