Omnicell Inc (OMCL)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -20,371 | -34,404 | -23,183 | -17,565 | 5,648 | 48,037 | 60,580 | 71,935 | 77,849 | 80,245 | 59,733 | 35,010 | 32,194 | 37,912 | 49,090 | 69,365 | 61,338 | 54,036 | 47,681 | 38,293 |
| Total stockholders’ equity | US$ in thousands | 1,188,950 | 1,187,440 | 1,163,560 | 1,142,540 | 1,130,140 | 1,135,400 | 1,092,640 | 1,074,740 | 1,146,690 | 1,111,340 | 1,052,570 | 1,011,010 | 967,503 | 918,399 | 887,461 | 878,500 | 845,254 | 807,533 | 773,242 | 730,485 |
| ROE | -1.71% | -2.90% | -1.99% | -1.54% | 0.50% | 4.23% | 5.54% | 6.69% | 6.79% | 7.22% | 5.67% | 3.46% | 3.33% | 4.13% | 5.53% | 7.90% | 7.26% | 6.69% | 6.17% | 5.24% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-20,371K ÷ $1,188,950K
= -1.71%
Omnicell, Inc.'s return on equity (ROE) has shown a declining trend over the past eight quarters. In Q4 2022, the company had an ROE of 0.50%, which was followed by a significant decrease to 4.23% in Q3 2022 and a further decrease to 5.54% in Q2 2022. However, in Q1 2023, the ROE declined to 6.69%, dropping to negative values in the subsequent quarters, reaching its lowest point of -2.90% in Q3 2023.
The negative ROE values in the recent quarters indicate that Omnicell, Inc. has been facing challenges generating profit relative to its shareholders' equity. This could be due to various factors such as declining profitability, high levels of debt, or inefficient utilization of assets. The downward trend in ROE may raise concerns among investors and stakeholders about the company's financial performance and its ability to generate returns on their investments.
Further analysis and investigation into Omnicell, Inc.'s financial statements, profitability ratios, efficiency ratios, and capital structure are recommended to identify the root causes of the declining ROE and to develop strategies for improving the company's financial performance and shareholder value in the future.
Peer comparison
Dec 31, 2023