Varex Imaging Corp (VREX)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 48,200 | 30,300 | 17,400 | -57,900 | 15,500 |
| Total stockholders’ equity | US$ in thousands | 567,700 | 533,400 | 483,300 | 451,700 | 444,900 |
| ROE | 8.49% | 5.68% | 3.60% | -12.82% | 3.48% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $48,200K ÷ $567,700K
= 8.49%
Over the past five years, Varex Imaging Corp's return on equity (ROE) has shown mixed performance. In 2023, the ROE improved to 8.49%, indicating that for every dollar of shareholders' equity, the company generated a profit of 8.49 cents. This is a positive sign as it demonstrates an increase in profitability and efficiency in the use of equity for generating earnings compared to the previous years.
The upward trend in ROE from 2020 to 2023 suggests that Varex Imaging Corp has been able to enhance its profitability and efficiency in managing its equity over the years. The negative ROE in 2020 (-12.82%) may have been a result of challenges or losses faced by the company in that year, but the subsequent recovery and improvement in ROE reflect a positive turnaround in the company's performance.
Overall, while the recent ROE of 8.49% indicates a positive trend for Varex Imaging Corp, it would be important for the company to sustain and further improve its ROE to enhance shareholder value and demonstrate continued profitability in the future.
Peer comparison
Sep 30, 2023