Zimmer Biomet Holdings Inc (ZBH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 903,800 | 1,024,000 | 231,400 | 401,600 | -138,900 |
| Total stockholders’ equity | US$ in thousands | 12,468,100 | 12,480,500 | 12,020,300 | 12,660,700 | 12,194,200 |
| ROE | 7.25% | 8.20% | 1.93% | 3.17% | -1.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $903,800K ÷ $12,468,100K
= 7.25%
The return on equity (ROE) of Zimmer Biomet Holdings Inc has shown fluctuations over the past five years. In December 31, 2020, the ROE was at a negative 1.14%, indicating that the company was generating a net loss relative to its shareholder equity. However, by December 31, 2021, the ROE improved to 3.17%, suggesting a recovery in profitability.
In December 31, 2022, the ROE slightly decreased to 1.93%, but notably rebounded in December 31, 2023, reaching 8.20%, indicating a significant improvement in the company's ability to generate profit using its shareholders' equity. By December 31, 2024, the ROE remained strong at 7.25%, indicating that Zimmer Biomet Holdings Inc continues to deliver solid returns to its equity shareholders.
Overall, while there have been fluctuations, Zimmer Biomet Holdings Inc has shown a positive trend in its return on equity over the past five years, demonstrating an improved ability to generate profits relative to the equity capital invested in the company.
Peer comparison
Dec 31, 2024