Merit Medical Systems Inc (MMSI)
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 | 120,357 | 120,039 | 117,429 | 101,948 | 94,411 | 100,183 | 89,621 | 84,674 | 74,516 | 61,728 | 58,423 | 48,041 | 48,454 | 43,219 | 28,243 | 4,269 | -9,843 | -29,426 | -29,815 | -3,898 |
| Total stockholders’ equity | US$ in thousands | 1,379,360 | 1,323,410 | 1,282,440 | 1,240,190 | 1,202,000 | 1,229,880 | 1,203,700 | 1,171,660 | 1,144,400 | 1,088,840 | 1,073,310 | 1,056,520 | 1,039,800 | 1,013,380 | 992,434 | 976,692 | 958,575 | 933,837 | 928,847 | 939,798 |
| ROE | 8.73% | 9.07% | 9.16% | 8.22% | 7.85% | 8.15% | 7.45% | 7.23% | 6.51% | 5.67% | 5.44% | 4.55% | 4.66% | 4.26% | 2.85% | 0.44% | -1.03% | -3.15% | -3.21% | -0.41% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $120,357K ÷ $1,379,360K
= 8.73%
Merit Medical Systems Inc's return on equity (ROE) has shown a positive trend over the past few years, starting from negative values in early 2020 and steadily improving to reach 8.73% by the end of December 2024.
The company experienced challenges in the initial period with negative ROE figures, indicating potential inefficiencies in generating profits from shareholders' equity. However, from March 2021 onwards, there has been a turnaround with ROE turning positive, signaling improved profitability in relation to shareholders' investment.
The consistent increase in ROE from 2021 to 2024 reflects the company's ability to enhance shareholder value through efficient management and operations. The ROE gradually rose from 0.44% in March 2021 to a peak of 9.16% in June 2024, indicating a sustained improvement in profitability and efficiency in the utilization of equity.
Overall, the positive trajectory of Merit Medical Systems Inc's ROE suggests a strengthening financial position and effective utilization of shareholder funds to generate returns for investors. However, it is essential for the company to maintain this positive trend to ensure continued value creation for its shareholders in the future.
Peer comparison
Dec 31, 2024