Masimo Corporation (MASI)

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	-304,900	78,600	79,400	79,100	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
Total stockholders’ equity	US$ in thousands	1,051,900	1,463,200	1,368,800	1,365,200	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
ROE		-28.99%	5.37%	5.80%	5.79%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-304,900K ÷ $1,051,900K
= -28.99%

Masimo Corporation's return on equity (ROE) has shown fluctuations over the past few years. The ROE started at a healthy 16.86% in March 2020 and remained relatively stable above 15% until June 2022. However, there was a notable decrease in ROE in subsequent quarters, reaching a low of 5.37% by September 2024.

The significant drop in ROE to -28.99% in December 2024 is concerning and warrants further investigation into the company's financial performance and operations during that period. Overall, the trend indicates a decline in the company's ability to generate profits relative to its shareholder's equity, which may raise questions about the company's profitability and financial health.