Owens & Minor Inc (OMI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -41,301 | 22,389 | 221,589 | 29,871 | -62,371 |
| Total stockholders’ equity | US$ in thousands | 924,166 | 945,604 | 938,501 | 712,054 | 462,154 |
| ROE | -4.47% | 2.37% | 23.61% | 4.20% | -13.50% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-41,301K ÷ $924,166K
= -4.47%
Owens & Minor, Inc.'s return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the company reported a negative ROE of -4.47%, indicating the company's net income generated is insufficient to cover the equity investment by shareholders. This negative ROE suggests the company faced challenges in utilizing shareholders' equity effectively to generate profits in 2023.
In contrast, in 2022, Owens & Minor, Inc. had an ROE of 2.37%, showing a slight improvement from the previous year but still indicating relatively low profitability generated from shareholders' equity. The ROE sharply increased to 23.61% in 2021, reflecting a significant improvement in the company's ability to generate profits from equity relative to the level of shareholder investment.
Moving on to 2020, the ROE stood at 4.20%, showing a decrease compared to 2021, but still indicating a moderate return generated on equity investment. In 2019, the company experienced a significant decline with a negative ROE of -13.50%, implying challenges in profitability and efficient utilization of shareholder equity during that year.
Overall, Owens & Minor, Inc.'s ROE has been volatile, with significant fluctuations in profitability relative to shareholders' equity investment over the past five years. The company should focus on improving operational efficiency, cost management, and revenue generation to enhance ROE and create sustainable value for its shareholders.
Peer comparison
Dec 31, 2023