Revvity Inc. (RVTY)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 270,385 | 693,094 | 569,179 | 943,157 | 727,887 |
| Total stockholders’ equity | US$ in thousands | 7,666,870 | 7,872,740 | 7,382,880 | 7,141,240 | 3,735,490 |
| ROE | 3.53% | 8.80% | 7.71% | 13.21% | 19.49% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $270,385K ÷ $7,666,870K
= 3.53%
Over the past five years, Revvity Inc.'s return on equity (ROE) has experienced a declining trend. In December 2020, the ROE stood at 19.49%, indicating that for every dollar of shareholder's equity, the company generated a return of 19.49%. However, by December 2024, the ROE had decreased to 3.53%, signifying a decline in the company's profitability and efficiency in utilizing its equity.
The decreasing trend in ROE suggests that either the company's net income has decreased relative to its equity, or the equity base has expanded faster than the net income generated. A lower ROE could indicate various factors such as inefficient asset utilization, lower profit margins, or increased financial leverage.
Revvity Inc. needs to focus on improving its profitability, operational efficiency, and overall management of its assets and liabilities to enhance its ROE in the future. Investors and stakeholders may closely monitor this trend as it can provide insights into the company's financial health and management effectiveness over time.
Peer comparison
Dec 31, 2024