ANI Pharmaceuticals Inc (ANIP)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	18,779	-47,896	-42,603	-22,548	6,094
Total stockholders’ equity	US$ in thousands	432,749	313,690	333,890	195,700	212,791
ROE		4.34%	-15.27%	-12.76%	-11.52%	2.86%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $18,779K ÷ $432,749K
= 4.34%

ANI Pharmaceuticals Inc's return on equity (ROE) has shown volatility over the past five years. In 2019, the ROE stood at a modest 2.82%, indicating a relatively lower profitability relative to shareholder equity. However, in 2020, 2021, and 2022, the company experienced negative ROEs, with the lowest being -14.63% in 2022. This negative trend suggests that ANI Pharmaceuticals struggled to generate profits in relation to its equity during those years.

On a positive note, in 2023, the ROE rebounded to 3.96%, indicating an improvement in the company's profitability relative to equity. While this is a positive sign, the ROE still remains relatively low, suggesting that ANI Pharmaceuticals may have further room for improvement in efficiently utilizing shareholder funds to generate profits. Overall, the fluctuating trend in ROE over the years underscores the importance for ANI Pharmaceuticals to focus on optimizing its profitability and effectively managing its equity to create sustainable value for its shareholders.