Collegium Pharmaceutical Inc (COLL)

Return on assets (ROA)

		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	69,190	88,594	99,893	93,294	48,155	9,016	-11,161	-29,359	-25,002	-42,837	-35,248	42,786	71,517	103,509	106,749	41,964	26,752	17,593	198	-12,572
Total assets	US$ in thousands	1,663,590	1,635,150	1,053,390	1,114,250	1,143,310	1,177,580	1,213,910	1,214,300	1,174,130	1,200,940	1,245,570	1,246,140	692,077	741,803	713,735	646,065	643,841	643,843	646,870	634,793
ROA		4.16%	5.42%	9.48%	8.37%	4.21%	0.77%	-0.92%	-2.42%	-2.13%	-3.57%	-2.83%	3.43%	10.33%	13.95%	14.96%	6.50%	4.16%	2.73%	0.03%	-1.98%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $69,190K ÷ $1,663,590K
= 4.16%

Collegium Pharmaceutical Inc's return on assets (ROA) has displayed fluctuations over the reporting periods provided. The ROA started at a negative value of -1.98% in March 2020, indicating that the company was not efficiently utilizing its assets to generate profits. However, the ROA improved steadily, reaching a peak of 14.96% by June 2021, indicating a significant increase in profitability relative to its asset base.

Subsequently, the ROA experienced a decline, dropping to 3.43% by March 2022. This downward trend continued, with the ROA turning negative by June 2022 and reaching its lowest point of -3.57% by September 2022. These negative ROA values suggest that Collegium Pharmaceutical Inc was not generating sufficient returns from its assets during this period.

However, the company managed to partially recover, with the ROA improving to 8.37% by March 2024. This upward trend continued, with the ROA hovering around 5-9% in the following quarters, indicating a moderate level of profitability relative to the assets employed.

Overall, Collegium Pharmaceutical Inc's ROA has exhibited volatility, with periods of both strong profitability and underperformance. It is important for the company to focus on effectively managing its assets to sustain and improve ROA levels in the future.