Mettler-Toledo International Inc (MTD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	788,778	872,502	768,985	602,739	561,109
Total stockholders’ equity	US$ in thousands	-149,938	24,793	171,421	282,675	420,780
ROE		—	3,519.15%	448.59%	213.23%	133.35%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $788,778K ÷ $-149,938K
= —

Mettler-Toledo International, Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years. In 2019, the ROE stood at 133.35%, indicating a strong profitability and efficiency in generating returns for its shareholders. This was followed by a notable increase in 2020 to 213.23%, reflecting further improvement in the company's ability to generate profits from shareholders' equity.

The ROE experienced a substantial jump in 2021, reaching 448.59%, suggesting a substantial increase in the company's profitability and efficiency in using shareholders' equity to generate earnings. This sharp rise may indicate improved operational performance, effective cost management, or successful investment strategies.

However, in the most recent year for which data is available (2022), the ROE skyrocketed to an exceptionally high 3,519.15%, representing a significant surge in the company's ability to generate profits relative to its equity base. Such an exceptional ROE figure may be influenced by one-time events, accounting changes, or other factors that could distort the ratio and should be analyzed further to understand the underlying reasons behind such a drastic increase.

Overall, Mettler-Toledo International, Inc.'s ROE has demonstrated notable volatility in recent years, with substantial fluctuations that warrant a closer examination to determine the factors driving these remarkable changes in profitability and efficiency.