Cytek Biosciences Inc (CTKB)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-6,020	-12,148	2,576	4,417	19,411
Total stockholders’ equity	US$ in thousands	395,737	393,064	425,295	406,458	-16,028
ROE		-1.52%	-3.09%	0.61%	1.09%	—

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-6,020K ÷ $395,737K
= -1.52%

Based on the data provided for Cytek Biosciences Inc's return on equity (ROE) over the years, the company's performance in generating profits relative to shareholders' equity has varied.

In December 2021, Cytek Biosciences Inc reported an ROE of 1.09%, indicating that for every dollar of shareholders' equity, the company generated a return of 1.09 cents. This figure suggests a relatively low return compared to the equity invested.

In the following year, December 2022, the company's ROE decreased to 0.61%, indicating a decline in the profitability of the company relative to its equity base. This could be a cause for concern as it reflects a less efficient utilization of shareholders' funds to generate profits.

By December 2023, the ROE further deteriorated to -3.09%, signaling that Cytek Biosciences Inc experienced a significant loss on shareholder investments during that period. This negative ROE indicates that the company's net income was not sufficient to cover the cost of equity financing, raising red flags about the company's financial health and performance.

Subsequently, in December 2024, the ROE improved slightly to -1.52%, but still remained negative, indicating continued challenges in generating profits relative to shareholders' equity.

Overall, the trend in Cytek Biosciences Inc's ROE over the years shows a concerning pattern of declining or negative returns, which may indicate underlying issues in the company's operations or financial management that need to be addressed for sustainable growth and profitability.