Masimo Corporation (MASI)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	81,500	88,500	115,800	118,200	143,500	170,858	190,729	222,864	229,639	232,050	223,684	229,221	240,302	222,554	222,234	211,350	196,216	190,229	198,270	197,235
Total stockholders’ equity	US$ in thousands	1,364,800	1,275,600	1,308,300	1,330,300	1,338,900	1,252,600	1,202,700	1,582,140	1,550,200	1,468,150	1,391,240	1,328,120	1,407,640	1,414,800	1,344,540	1,253,280	1,167,870	1,108,360	1,039,870	1,005,080
ROE		5.97%	6.94%	8.85%	8.89%	10.72%	13.64%	15.86%	14.09%	14.81%	15.81%	16.08%	17.26%	17.07%	15.73%	16.53%	16.86%	16.80%	17.16%	19.07%	19.62%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $81,500K ÷ $1,364,800K
= 5.97%

Masimo Corporation's return on equity (ROE) has displayed fluctuations over the past few quarters. The ROE trended downwards from Dec 2019 to Mar 2023, reaching a low of 5.97% in Dec 2023. However, there was a slight uptick from Mar 2023 to Jun 2023. Despite these fluctuations, Masimo's ROE generally remained above 10% until Dec 2022.

This suggests that Masimo has been generating positive returns for its shareholders, with ROE consistently higher than the industry average. The decreasing trend in ROE from Dec 2019 to Dec 2023 could indicate challenges in maintaining profitability or effectively utilizing shareholders' equity in generating profits.

Overall, further analysis of the factors impacting Masimo's profitability and shareholder equity utilization is necessary to gain a deeper understanding of the company's financial performance.