Exelixis Inc (EXEL)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 521,267 207,765 182,282 231,063 111,781
Total stockholders’ equity US$ in thousands 2,244,200 2,263,910 2,488,430 2,210,620 1,879,110
ROE 23.23% 9.18% 7.33% 10.45% 5.95%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $521,267K ÷ $2,244,200K
= 23.23%

Exelixis Inc's return on equity (ROE) has shown variability over the past five years. In December 2020, the ROE was 5.95%, indicating the company generated a profit of 5.95% for each dollar of shareholders' equity. This metric increased to 10.45% by December 2021, reflecting improved profitability and efficiency in the utilization of equity.

However, the ROE declined slightly to 7.33% in December 2022, suggesting a potential decrease in the company's ability to generate profits relative to its equity base. The metric then rebounded to 9.18% by December 2023, indicating a recovery in profitability.

Notably, in December 2024, Exelixis Inc's ROE surged to 23.23%, reaching its highest level over the five-year period. This significant increase could be attributed to enhanced financial performance and better utilization of shareholders' equity.

Overall, the fluctuation in Exelixis Inc's ROE highlights the company's varying efficiency in generating profits from shareholders' equity. It is essential for stakeholders to monitor these trends to assess the company's financial health and performance accurately.