Quidel Corporation (QDEL)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -2,027,000 -10,100 548,700 704,200 810,287
Total stockholders’ equity US$ in thousands 2,984,500 5,005,900 4,934,600 1,929,360 1,332,700
ROE -67.92% -0.20% 11.12% 36.50% 60.80%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-2,027,000K ÷ $2,984,500K
= -67.92%

The return on equity (ROE) of Quidel Corporation has exhibited a notable downward trend over the years based on the provided data. In December 31, 2020, the ROE stood at a robust 60.80%, indicating that for every dollar of shareholders' equity, the company generated a profit of approximately 60.80 cents. However, by December 31, 2024, the ROE had plummeted to a negative 67.92%, signaling that the company experienced a loss on shareholder's equity, implying potential operational challenges or financial difficulties.

The declining trend in ROE suggests a decreasing efficiency in utilizing shareholder funds to generate profits over time, which could raise concerns among investors and stakeholders about the company's profitability and operational performance. It is crucial for Quidel Corporation to analyze the factors contributing to this decline in ROE and implement strategic measures to improve profitability and enhance shareholder value in the future.