Masimo Corporation (MASI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -304,900 | 81,500 | 143,500 | 229,639 | 240,302 |
| Total stockholders’ equity | US$ in thousands | 1,051,900 | 1,364,800 | 1,338,900 | 1,550,200 | 1,407,640 |
| ROE | -28.99% | 5.97% | 10.72% | 14.81% | 17.07% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-304,900K ÷ $1,051,900K
= -28.99%
Masimo Corporation's return on equity (ROE) has shown a declining trend over the past five years. The ROE decreased from 17.07% as of December 31, 2020, to 14.81% as of December 31, 2021, indicating a slight reduction in the company's ability to generate profits from shareholders' equity.
However, the decline in ROE became more pronounced in the subsequent years, dropping to 10.72% as of December 31, 2022, and further decreasing to 5.97% as of December 31, 2023. These decreases suggest potential challenges in efficiently utilizing shareholders' equity to generate returns.
The most concerning development was observed in the latest year, with the ROE plummeting to -28.99% as of December 31, 2024. A negative ROE implies that the company incurred a net loss for the period, which can be detrimental to shareholder confidence and the company's financial health.
Overall, the declining trend in Masimo Corporation's ROE signals potential issues in profitability and efficiency in utilizing equity capital, warranting further investigation into the factors contributing to these deteriorations.
Peer comparison
Dec 31, 2024