ACADIA Pharmaceuticals Inc (ACAD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 226,451 | -61,286 | -215,975 | -167,870 | -281,584 |
| Total stockholders’ equity | US$ in thousands | 732,793 | 431,755 | 400,413 | 540,894 | 627,009 |
| ROE | 30.90% | -14.19% | -53.94% | -31.04% | -44.91% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $226,451K ÷ $732,793K
= 30.90%
ACADIA Pharmaceuticals Inc's return on equity (ROE) has shown fluctuating performance over the past five years.
As of December 31, 2020, the ROE was -44.91%, indicating that the company was experiencing a negative return on equity, implying operational inefficiencies or financial challenges.
By December 31, 2021, although still negative at -31.04%, there was a slight improvement in ROE, suggesting some progress in addressing the underlying issues affecting profitability.
Subsequently, by December 31, 2022, the ROE deteriorated significantly to -53.94%, indicating a setback in the company's ability to generate returns for its shareholders, potentially due to increased costs or lower revenues.
However, by December 31, 2023, there was a notable improvement in ROE, which decreased to -14.19%. This improvement could be indicative of strategic initiatives or operational improvements that positively impacted profitability.
By the end of December 31, 2024, ACADIA Pharmaceuticals Inc witnessed a substantial improvement in its ROE, reaching 30.90%. This significant increase suggests that the company has made considerable progress in effectively utilizing its equity to generate returns, potentially through increased revenues, efficient cost management, or other factors.
In conclusion, the analysis of ACADIA Pharmaceuticals Inc's ROE highlights the company's evolving financial performance, with improvements shown in recent years after facing challenges earlier in the period. Continued monitoring of ROE will be essential to assess the company's ability to sustain and further enhance shareholder value in the future.
Peer comparison
Dec 31, 2024