Zimmer Biomet Holdings Inc (ZBH)

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	1,024,000	474,300	505,600	449,700	231,400	277,900	229,500	217,700	401,600	819,300	916,200	567,700	-138,900	-151,900	36,700	377,000	1,131,600	-90,200	-359,100	-307,800
Total stockholders’ equity	US$ in thousands	12,480,500	12,510,800	12,371,500	12,150,700	12,020,300	12,244,700	12,118,400	12,015,500	12,660,700	12,708,600	12,577,900	12,445,000	12,194,200	11,872,200	11,641,400	11,878,600	12,388,100	12,081,500	11,659,100	11,534,400
ROE		8.20%	3.79%	4.09%	3.70%	1.93%	2.27%	1.89%	1.81%	3.17%	6.45%	7.28%	4.56%	-1.14%	-1.28%	0.32%	3.17%	9.13%	-0.75%	-3.08%	-2.67%

December 31, 2023 calculation

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

Based on the data provided for Zimmer Biomet Holdings Inc's Return on Equity (ROE), we can observe fluctuations in the company's performance over the past eight quarters. ROE measures the profitability generated by the company from the shareholders' equity.

In Q4 2023, the ROE stood at 8.20%, reflecting a significant improvement from the previous quarter's 3.79%. This increase suggests that the company was able to generate a higher profit relative to its shareholder equity during this period.

Looking at a broader trend, Zimmer Biomet Holdings Inc's ROE has shown a general upward trajectory over the past two years, with occasional fluctuations. The ROE has more than quadrupled from 1.81% in Q1 2022 to 8.20% in Q4 2023, indicating an overall positive trend in the company's profitability relative to its equity base.

It is important for investors and stakeholders to monitor ROE as it indicates how effectively the company is utilizing shareholders' equity to generate profits. The increase in ROE over time suggests improved efficiency and profitability, which may be a positive signal for the company's financial health and management effectiveness.