Catalyst Pharmaceuticals Inc (CPRX)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	163,889	71,410	83,079	39,482	74,983
Total stockholders’ equity	US$ in thousands	727,632	387,881	300,421	206,831	169,598
ROE		22.52%	18.41%	27.65%	19.09%	44.21%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $163,889K ÷ $727,632K
= 22.52%

The return on equity (ROE) of Catalyst Pharmaceuticals Inc has experienced fluctuations over the years. In 2020, the ROE was reported at a strong 44.21%, indicating that the company generated a substantial return for its shareholders relative to its equity. However, by the end of 2021, the ROE decreased to 19.09%, suggesting a decline in the profitability and efficiency of utilizing the shareholders' equity.

In 2022, there was a notable improvement in ROE, reaching 27.65%, indicating a better performance in generating profits from the shareholders' equity compared to the previous year. In 2023, the ROE declined to 18.41%, signaling a decrease in the return generated for shareholders.

By the end of 2024, the ROE increased to 22.52%, showing a slight improvement in profitability and operational efficiency compared to the prior year. Overall, the ROE trend demonstrates variability in the company's ability to generate profits relative to its shareholders' equity, with fluctuations indicating changing levels of financial performance and efficiency over the years.