ACADIA Pharmaceuticals Inc (ACAD)
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 | 226,451 | 128,506 | 30,565 | -1,710 | -61,286 | -148,808 | -110,815 | -145,940 | -215,975 | -217,344 | -204,618 | -214,478 | -167,870 | -191,536 | -261,739 | -260,009 | -281,584 | -267,860 | -225,178 | -237,978 |
| Total stockholders’ equity | US$ in thousands | 732,793 | 577,180 | 516,700 | 464,044 | 431,755 | 362,174 | 395,793 | 374,258 | 400,413 | 425,686 | 434,848 | 444,797 | 540,894 | 566,955 | 564,838 | 581,606 | 627,009 | 654,867 | 663,013 | 638,382 |
| ROE | 30.90% | 22.26% | 5.92% | -0.37% | -14.19% | -41.09% | -28.00% | -38.99% | -53.94% | -51.06% | -47.06% | -48.22% | -31.04% | -33.78% | -46.34% | -44.71% | -44.91% | -40.90% | -33.96% | -37.28% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $226,451K ÷ $732,793K
= 30.90%
ROE (Return on Equity) is a key financial ratio that indicates a company's efficiency in generating profit from shareholders' equity. For ACADIA Pharmaceuticals Inc, the ROE has shown a volatile trend over the periods provided.
The ROE was negative in most quarters from March 2020 to December 2023, indicating that the company was not effectively utilizing shareholders' equity to generate profit during those periods. However, there was a notable improvement starting from March 2024, with the ROE turning positive and progressively increasing in the subsequent quarters, reaching 30.90% by December 31, 2024.
The turnaround in ROE from negative to positive values suggests that ACADIA Pharmaceuticals Inc has enhanced its profitability and efficiency in utilizing shareholder funds to generate earnings. Investors and analysts may view this positive trend favorably as it signifies a potential improvement in the company's financial performance and management effectiveness. It will be important to monitor future ROE figures to assess the sustainability of this positive trend.
Peer comparison
Dec 31, 2024