Teleflex Incorporated (TFX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 69,675 | 356,328 | 363,139 | 485,374 | 335,324 |
| Total stockholders’ equity | US$ in thousands | 4,278,140 | 4,440,990 | 4,021,970 | 3,754,750 | 3,336,460 |
| ROE | 1.63% | 8.02% | 9.03% | 12.93% | 10.05% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $69,675K ÷ $4,278,140K
= 1.63%
The return on equity (ROE) of Teleflex Incorporated has shown fluctuations over the past five years. In 2020, the ROE was reported at 10.05%, indicating that for every dollar of equity, the company generated a return of 10.05%. This figure increased to 12.93% by the end of 2021, suggesting an improvement in the company's ability to generate profit from shareholders' equity.
However, the following years saw a decline in ROE, with the ratio dropping to 9.03% in 2022 and further decreasing to 8.02% in 2023. These decreases could indicate challenges or inefficiencies in utilizing equity to generate profits during these periods.
The most significant decline was observed in 2024, where the ROE plummeted to 1.63%. Such a sharp decline could raise concerns about the company's profitability and efficiency in utilizing shareholder equity effectively. It is imperative for Teleflex Incorporated to analyze the reasons behind this drastic decrease and take corrective actions to improve its ROE in the future.
Peer comparison
Dec 31, 2024