Envista Holdings Corp (NVST)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,118,600 | -100,200 | 243,100 | 340,500 | 33,300 |
| Total stockholders’ equity | US$ in thousands | 2,934,800 | 4,173,900 | 4,206,900 | 4,057,600 | 3,720,600 |
| ROE | -38.12% | -2.40% | 5.78% | 8.39% | 0.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,118,600K ÷ $2,934,800K
= -38.12%
Envista Holdings Corp's return on equity (ROE) has shown a fluctuating trend over the past five years. In 2020, the company had a ROE of only 0.90%, indicating a low level of profitability relative to its equity. However, there was a significant improvement in 2021, with the ROE increasing to 8.39%, suggesting a more efficient utilization of shareholder equity to generate profits.
In 2022, the ROE slightly decreased to 5.78%, still showing a relatively decent performance in terms of return on equity. The following year, in 2023, the company experienced a decline in profitability as evidenced by a negative ROE of -2.40%. This negative ROE indicates that the company was not generating sufficient profits to provide returns to its equity holders.
Furthermore, in 2024, Envista Holdings Corp's ROE deteriorated significantly to -38.12%, highlighting a substantial loss-making situation where the company's net income was insufficient to cover the equity investments. This might raise concerns among investors about the company's operational efficiency and financial health.
Overall, the fluctuating trend in Envista Holdings Corp's ROE over the past five years suggests a varying level of profitability and efficiency in utilizing shareholders' equity. Investors and stakeholders may need to closely monitor the company's performance and financial strategies to assess its ability to generate sustainable returns on equity in the future.
Peer comparison
Dec 31, 2024