STAAR Surgical Company (STAA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 21,347 | 39,665 | 24,501 | 5,913 | 14,048 |
| Total stockholders’ equity | US$ in thousands | 385,954 | 336,112 | 261,568 | 197,222 | 159,884 |
| ROE | 5.53% | 11.80% | 9.37% | 3.00% | 8.79% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $21,347K ÷ $385,954K
= 5.53%
The return on equity (ROE) for STAAR Surgical Company has fluctuated over the past five years, ranging from 3.00% in 2020 to 11.80% in 2022. In 2023, the ROE decreased to 5.53%, indicating a lower profitability compared to the previous year.
ROE measures the company's efficiency in generating profits from shareholders' equity. A higher ROE suggests that the company is utilizing its equity effectively to generate profits for shareholders. Conversely, a lower ROE may indicate inefficiency or decreased profitability.
The downward trend in ROE from 2022 to 2023 could be a cause for concern, as it suggests a decline in the company's profitability relative to its equity base. Investors and analysts may want to further examine the reasons behind this decrease in ROE and assess the company's financial performance and efficiency in utilizing shareholders' equity going forward.
Peer comparison
Dec 31, 2023