Collegium Pharmaceutical Inc (COLL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	48,155	-25,002	71,517	26,752	-22,722
Total stockholders’ equity	US$ in thousands	195,431	194,842	202,928	186,031	87,432
ROE		24.64%	-12.83%	35.24%	14.38%	-25.99%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $48,155K ÷ $195,431K
= 24.64%

Collegium Pharmaceutical Inc's return on equity (ROE) has shown fluctuations over the past five years.

In 2023, the ROE stood at 24.64%, indicating a strong profitability potential as the company generated $24.64 in profit for every dollar of shareholder equity. This represents a significant improvement compared to the negative ROE of -12.83% in 2022, where the company incurred losses relative to shareholder equity.

In 2021, Collegium Pharmaceutical Inc saw a high ROE of 35.24%, suggesting efficient utilization of equity to generate profits. The ROE for 2020 was 14.38%, reflecting a moderate profitability level relative to equity. However, in 2019, the company experienced a negative ROE of -25.99%, indicating that the company was not able to generate profits to cover shareholder equity effectively.

Overall, the recent positive trend in ROE signals improved profitability and efficiency in utilizing equity for earnings growth, highlighting a positive trajectory for Collegium Pharmaceutical Inc. However, it is essential for the company to sustain and further enhance this profitability trend in the future to create long-term value for its shareholders.