ANI Pharmaceuticals Inc (ANIP)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-18,522	18,779	-47,896	-42,603	-22,548
Total stockholders’ equity	US$ in thousands	428,530	457,599	338,540	358,740	195,700
ROE		-4.32%	4.10%	-14.15%	-11.88%	-11.52%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-18,522K ÷ $428,530K
= -4.32%

The return on equity (ROE) for ANI Pharmaceuticals Inc experienced fluctuations over the period indicated in the data provided. In December 2020 and December 2021, the ROE was in the negative range at -11.52% and -11.88% respectively, reflecting a lower profitability relative to the shareholders' equity during those years.

The negative trend continued in December 2022 with an ROE of -14.15%, indicating further challenges in generating profit using the shareholders' equity. However, there was a notable improvement in December 2023 with an ROE of 4.10%, suggesting a return to profitability and a positive outcome for shareholders during that period.

Despite this improvement, the positive momentum was not sustained as seen in December 2024 with the ROE dropping back into the negative territory at -4.32%. This regression may raise concerns about the company's ability to consistently generate returns for its shareholders in the long term.

Overall, the fluctuating pattern of ANI Pharmaceuticals Inc's ROE highlights the need for a closer examination of the company's financial performance drivers and strategies to enhance its profitability and create sustainable value for its shareholders.