ACADIA Pharmaceuticals Inc (ACAD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.46% | 93.70% | 98.03% | 96.05% | 95.35% |
| Operating profit margin | 24.10% | -10.10% | -43.23% | -35.20% | -64.87% |
| Pretax margin | 26.94% | -7.03% | -41.27% | -34.60% | -63.60% |
| Net profit margin | 23.64% | -8.44% | -41.76% | -34.67% | -63.74% |
ACADIA Pharmaceuticals Inc has shown a consistent improvement in its gross profit margin over the years, increasing from 95.35% in 2020 to 98.03% in 2022 before experiencing a slight dip to 91.46% in 2024. This indicates the company's ability to efficiently manage its production costs and generate profits from its core business activities.
However, the operating profit margin of ACADIA Pharmaceuticals Inc has been volatile, starting from a negative margin of -64.87% in 2020, improving to -35.20% in 2021 and then deteriorating to -43.23% in 2022 before turning positive at 24.10% in 2024. This suggests fluctuations in the company's ability to control its operating expenses and generate profits from its regular operations.
Similarly, the pretax margin and net profit margin of ACADIA Pharmaceuticals Inc have shown a pattern of improvement over the years, with both margins starting in negative territory in 2020 and gradually increasing to positive values by 2024. The pretax margin improved from -63.60% in 2020 to 26.94% in 2024, while the net profit margin improved from -63.74% in 2020 to 23.64% in 2024. This indicates the company's success in managing its overall costs and expenses to enhance profitability.
In conclusion, while ACADIA Pharmaceuticals Inc has demonstrated strength in its gross profit margin, showing efficiency in managing production costs, its operating profit margin has been volatile. However, the company has made significant progress in improving its pretax and net profit margins over the years, indicating enhanced profitability through effective cost management and revenue generation.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.43% | -9.80% | -38.04% | -24.34% | -36.62% |
| Return on assets (ROA) | 19.07% | -8.18% | -36.74% | -23.98% | -35.98% |
| Return on total capital | 11.50% | -17.00% | -55.84% | -31.51% | -45.71% |
| Return on equity (ROE) | 30.90% | -14.19% | -53.94% | -31.04% | -44.91% |
Based on the provided data, let's analyze the profitability ratios of ACADIA Pharmaceuticals Inc for the years ending December 31, 2020 to 2024.
1. Operating return on assets (Operating ROA):
- ACADIA Pharmaceuticals Inc's operating return on assets (Operating ROA) for the years in review fluctuates significantly. It was negative in 2020 (-36.62%) and continued to be negative in 2021 and 2022. However, a slight improvement was seen in 2023 (-9.80%), followed by a notable positive performance in 2024 (19.43%). This improvement suggests the company became more efficient in generating profits from its operations relative to its assets.
2. Return on assets (ROA):
- The return on assets (ROA) of ACADIA Pharmaceuticals Inc also witnessed a negative trend in the initial years, with percentages improving from -35.98% in 2020 to 19.07% in 2024. Notably, the company managed to turn the negative trend into a positive one over the years, indicating better utilization of its assets to generate profits.
3. Return on total capital:
- The return on total capital for ACADIA Pharmaceuticals Inc was negative in the years leading up to 2023. However, in 2024, there was a significant recovery as the ratio turned positive to 11.50%. This improvement indicates that the company started generating returns on its total capital employed.
4. Return on equity (ROE):
- ACADIA Pharmaceuticals Inc's return on equity (ROE) also experienced a similar negative trend in the early years, switching to a positive value in 2024 (30.90%). The company demonstrated a noteworthy improvement in utilizing equity to generate profits for its shareholders, compared to the negative performance in prior years.
In conclusion, ACADIA Pharmaceuticals Inc showed a mixed performance in terms of profitability ratios over the years, with notable improvement in 2024 across various metrics. The positive trend in profitability ratios suggests potential enhancement in the company's operational efficiency and effectiveness in generating returns for its stakeholders.