Dentsply Sirona Inc (XRAY)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -910,000 | -132,000 | -950,000 | 411,000 | -83,000 |
| Total stockholders’ equity | US$ in thousands | 1,942,000 | 3,293,000 | 3,812,000 | 5,043,000 | 4,970,000 |
| ROE | -46.86% | -4.01% | -24.92% | 8.15% | -1.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-910,000K ÷ $1,942,000K
= -46.86%
Dentsply Sirona Inc's return on equity (ROE) has exhibited significant fluctuations over the years. In 2020, the ROE was negative at -1.67%, indicating that the company's net income was insufficient to generate returns for shareholders. However, there was an improvement in 2021 as the ROE increased to 8.15%, suggesting better profitability and more effective utilization of shareholders' equity.
The following year, in 2022, the ROE took a significant downturn to -24.92%, signaling a significant decline in the company's ability to generate profits relative to its equity base. This sharp decrease could be due to various reasons such as increased expenses, lower revenues, or inefficient capital allocation.
Although there was a slight improvement in 2023 with a ROE of -4.01%, the metric remains negative, indicating ongoing challenges in profitability and efficiency within the company. The following year, in 2024, the ROE decreased even further to -46.86%, reflecting a substantial worsening of the company's financial performance relative to its equity base.
Overall, the fluctuating ROE of Dentsply Sirona Inc suggests volatility in its profitability and efficiency in utilizing shareholders' equity. Investors and stakeholders may need to closely monitor the company's financial performance and strategies to address the factors contributing to the negative ROEs observed in recent years.
Peer comparison
Dec 31, 2024