Catalyst Pharmaceuticals Inc (CPRX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	71,410	83,079	39,482	74,983	31,875
Total stockholders’ equity	US$ in thousands	387,881	300,421	206,831	169,598	87,630
ROE		18.41%	27.65%	19.09%	44.21%	36.37%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $71,410K ÷ $387,881K
= 18.41%

The return on equity (ROE) for Catalyst Pharmaceuticals Inc has fluctuated over the past five years, with values ranging from 18.41% to 44.21%. The company's ROE increased significantly from 2019 to 2020, reaching its highest point at 44.21%, indicating efficient utilization of shareholder equity to generate profits. However, there was a notable decrease in ROE in 2021, followed by a slight increase in 2022 and another decrease in 2023. Overall, the trend suggests that the company has experienced some variability in generating returns for its shareholders over the period analyzed. Further analysis of the company's financial performance and operational efficiency may be warranted to better understand the factors impacting its ROE dynamics.