Waters Corporation (WAT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 637,834 | 642,234 | 707,755 | 692,843 | 521,571 |
| Total stockholders’ equity | US$ in thousands | 1,828,510 | 1,150,340 | 504,488 | 367,554 | 232,144 |
| ROE | 34.88% | 55.83% | 140.29% | 188.50% | 224.68% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $637,834K ÷ $1,828,510K
= 34.88%
Waters Corporation's return on equity (ROE) has exhibited a declining trend over the reported years. Starting at a high of 224.68% on December 31, 2020, the ROE decreased to 188.50% by the end of 2021, signaling a reduction in the company's ability to generate profits from shareholders' equity. This trend continued with further declines to 140.29% by December 31, 2022, 55.83% by December 31, 2023, and reaching 34.88% by the end of 2024.
The decreasing trend in ROE could indicate various underlying factors impacting the company's financial performance, such as a decrease in net income or higher equity levels. It is essential for investors and stakeholders to further investigate the reasons behind this decline to assess the company's profitability and efficiency in utilizing shareholders' equity to generate returns.
Peer comparison
Dec 31, 2024