Amphastar P (AMPH)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	137,545	91,386	62,116	1,403	48,939
Total stockholders’ equity	US$ in thousands	639,421	528,658	445,522	402,306	381,366
ROE		21.51%	17.29%	13.94%	0.35%	12.83%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $137,545K ÷ $639,421K
= 21.51%

Amphastar Pharmaceuticals Inc has exhibited a fluctuating trend in its return on equity (ROE) over the past five years. The ROE increased from 12.83% in 2019 to 17.29% in 2022, suggesting improved efficiency in generating profits relative to shareholders' equity during this period. In 2023, the ROE further rose to 21.51%, indicating a continued positive trajectory in utilizing equity to generate net income.

The significant jump from 2021 to 2022 and 2022 to 2023 indicates a potentially successful implementation of strategies aimed at enhancing profitability and optimizing the utilization of shareholder funds. However, it is important to note that in 2020, the company experienced a minimal ROE of 0.35%, which may have been due to specific challenges or inefficiencies that impacted their profitability.

Overall, the upward trend in ROE from 2019 to 2023 suggests that Amphastar Pharmaceuticals Inc has been able to deliver increasing returns for its shareholders through effective management of its assets and financial resources. Further analysis of the company's operations, financial structure, and industry dynamics would provide deeper insights into the factors driving these changes in ROE.