Waters Corporation (WAT)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	642,234	653,091	674,537	688,847	707,755	696,932	702,119	704,547	692,843	694,915	660,499	616,136	521,571	503,929	515,293	536,774	592,198	576,681	579,562	590,829
Total stockholders’ equity	US$ in thousands	1,150,340	905,522	771,229	599,823	504,488	385,236	392,124	374,937	367,554	295,222	268,273	230,962	232,144	-41,581	-191,742	-337,999	-216,281	115,500	556,245	967,742
ROE		55.83%	72.12%	87.46%	114.84%	140.29%	180.91%	179.06%	187.91%	188.50%	235.39%	246.20%	266.77%	224.68%	—	—	—	—	499.29%	104.19%	61.05%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $642,234K ÷ $1,150,340K
= 55.83%

To analyze Waters Corp.'s return on equity (ROE) trend, we examined the values from the provided table. The ROE has shown a declining trend over recent quarters. Starting at a high of 187.91% in Q1 2022, the ROE steadily decreased to 114.84% in Q1 2023.

This declining trend may indicate a decrease in profitability relative to shareholder's equity, suggesting potential inefficiencies in the company's operations or challenges in generating returns for shareholders.

However, it is important to note that while the ROE has decreased, the current values are still relatively high, indicating that the company is efficiently utilizing its equity to generate profits. It remains essential for stakeholders to monitor future quarters to determine if the trend continues or if there are improvements in the company's profitability and utilization of equity.