Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', IDXX's return on equity was 107.9%, measuring profitability for shareholders. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2021' stood at -35.8%.
• In '2022', IDXX's return on equity was 104.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2022' stood at -50.4%. Industry average declined by 14.6% from previous year.
• In '2023', IDXX's return on equity was 80.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2023' stood at -43.5%. Industry average increased by 6.9% compared to previous year.
• In '2024', IDXX's return on equity was 57.7%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2024' stood at -45.4%. Industry average declined by 1.9% from previous year.
Overall, IDXX's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.