Merit Medical Systems Inc (MMSI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	94,411	74,516	48,454	-9,843	5,451
Total stockholders’ equity	US$ in thousands	1,202,000	1,144,400	1,039,800	958,575	949,944
ROE		7.85%	6.51%	4.66%	-1.03%	0.57%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $94,411K ÷ $1,202,000K
= 7.85%

Merit Medical Systems, Inc.'s return on equity (ROE) has shown an upward trend over the past five years. The company's ROE was consistently positive from 2019 to 2023, with figures ranging from 0.57% to 7.85%. This indicates that the company has been effectively utilizing shareholder equity to generate profits during this period.

The significant improvement in ROE from negative territory in 2020 to positive figures in subsequent years demonstrates enhanced efficiency in creating value for shareholders. The latest ROE of 7.85% in 2023 shows a positive trajectory in the company's profitability and efficiency of utilizing equity.

Overall, Merit Medical Systems, Inc.'s improving ROE reflects management's efforts in increasing profitability and generating higher returns for shareholders over the years.