Cytek Biosciences Inc (CTKB)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	US$ in thousands	-12,148	2,484	3,027
Total stockholders’ equity	US$ in thousands	393,064	425,546	405,385
ROE		-3.09%	0.58%	0.75%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-12,148K ÷ $393,064K
= -3.09%

The return on equity (ROE) for Cytek Biosciences Inc has shown a declining trend over the past three years. In 2021, the ROE was 0.75%, which decreased to 0.58% in 2022 and further dropped to -3.09% in 2023. This negative ROE in 2023 indicates that the company's net income was insufficient to cover its shareholders' equity, resulting in a loss.

A negative ROE can be concerning as it implies that the company is not effectively utilizing its shareholders' investments to generate profits. It may indicate operational inefficiencies, declining profitability, or financial challenges. Investors and stakeholders typically prefer a positive ROE, indicating that the company is generating profits relative to its equity capital.

Cytek Biosciences Inc should closely examine its financial performance, operational efficiency, and strategies to improve its ROE and overall financial health. Monitoring key factors affecting the ROE, such as net income, total assets, and equity, can help the company identify areas for improvement and drive sustainable growth in the future.