Zimmer Biomet Holdings Inc (ZBH)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,024,000	231,400	401,600	-138,900	1,131,600
Total stockholders’ equity	US$ in thousands	12,480,500	12,020,300	12,660,700	12,194,200	12,388,100
ROE		8.20%	1.93%	3.17%	-1.14%	9.13%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,024,000K ÷ $12,480,500K
= 8.20%

Zimmer Biomet Holdings Inc's return on equity (ROE) has shown varying trends over the past five years. In 2023, the ROE stood at 8.20%, marking a notable improvement compared to the previous year's 1.93%. This increase indicates that the company is generating a higher return for each dollar of shareholders' equity invested, signaling improved efficiency in utilizing equity to generate profits.

Looking back further, the ROE in 2021 was 3.17%, reflecting a modest increase from the negative ROE of -1.14% in 2020. The positive trend in ROE over these years suggests that Zimmer Biomet Holdings Inc has been progressively enhancing its profitability relative to its shareholders' equity.

The highest ROE in recent years was recorded in 2019 at 9.13%, indicating a peak in the company's profitability and efficiency in that particular year. The subsequent years showed fluctuations in ROE, but the positive ROE in 2023 demonstrates a rebound in profitability and efficiency.

Overall, Zimmer Biomet Holdings Inc has shown variability in its ROE performance in recent years, with 2023 standing out as a year of improved return on equity compared to the preceding years. Further analysis of the company's financial performance and strategies would be necessary to understand the factors driving these changes in ROE.