Zimmer Biomet Holdings Inc (ZBH)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	903,800	1,083,500	997,100	963,900	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
Total stockholders’ equity	US$ in thousands	12,468,100	12,374,700	12,741,100	12,598,000	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
ROE		7.25%	8.76%	7.83%	7.65%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $903,800K ÷ $12,468,100K
= 7.25%

Zimmer Biomet Holdings Inc's return on equity (ROE) has shown fluctuations over the analyzed periods, ranging from negative values to positive percentages. The ROE was particularly low in the second half of 2020 and the first half of 2021, with negative values indicating challenges in generating profits relative to shareholders' equity. However, there was a notable improvement in ROE from March 31, 2021, onwards, reaching its highest point at December 31, 2024.

The increasing trend in ROE since early 2021 suggests that Zimmer Biomet has been more effective in utilizing shareholders' equity to generate profits. The positive ROE percentages in the latter periods reflect a healthier financial performance and increased shareholder value. It is essential for the company to sustain this positive trend to continue delivering value to its shareholders and stakeholders.