Amphastar P (AMPH)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	137,545	135,291	101,943	93,165	91,386	77,233	90,907	81,328	62,116	36,083	10,454	2,495	1,403	6,650	4,041	52,020	48,939	51,832	52,911	2,271
Total stockholders’ equity	US$ in thousands	639,421	595,140	589,235	548,577	528,658	505,165	499,307	479,525	445,522	430,176	421,993	405,558	402,306	450,962	397,681	377,514	381,366	389,405	387,845	334,986
ROE		21.51%	22.73%	17.30%	16.98%	17.29%	15.29%	18.21%	16.96%	13.94%	8.39%	2.48%	0.62%	0.35%	1.47%	1.02%	13.78%	12.83%	13.31%	13.64%	0.68%

December 31, 2023 calculation

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

To analyze the return on equity (ROE) of Amphastar Pharmaceuticals Inc based on the given data, we can observe that the ROE has fluctuated over the eight quarters provided. The ROE ranged from a low of 15.29% in Q3 2022 to a high of 22.73% in Q3 2023. The company experienced a general upward trend in ROE from Q1 2022 to Q3 2023, with a peak in Q3 2023.

This improvement in ROE indicates that Amphastar Pharmaceuticals Inc has become more efficient in utilizing its equity to generate profits for shareholders. A rising ROE is often considered a positive sign of management's effectiveness in generating returns on the funds provided by shareholders.

Overall, the increasing trend in ROE signals the company's ability to generate higher profits relative to its equity base over the given period. Investors and stakeholders may view this trend positively, as it suggests the company is becoming more profitable and efficient in managing its resources.