Omnicell Inc (OMCL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -20,371 | 5,648 | 77,849 | 32,194 | 61,338 |
| Total stockholders’ equity | US$ in thousands | 1,188,950 | 1,130,140 | 1,146,690 | 967,503 | 845,254 |
| ROE | -1.71% | 0.50% | 6.79% | 3.33% | 7.26% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-20,371K ÷ $1,188,950K
= -1.71%
Omnicell, Inc.'s return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE was negative at -1.71%, indicating that the company generated a loss relative to its shareholders' equity. This represents a decline from the previous year's ROE of 0.50%.
Looking back further, we observe that in 2021, Omnicell recorded an ROE of 6.79%, which was a relatively strong performance compared to the preceding years. However, the ROE in 2020 and 2019 stood at 3.33% and 7.26%, respectively, showing a mixed trend in profitability over this period.
The negative ROE in 2023 raises concerns regarding the company's ability to generate returns for its shareholders in the short term. Omnicell may need to assess its operational efficiency and profitability drivers to improve its ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2023