Fulgent Genetics Inc (FLGT)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -42,708 -167,825 143,403 104,339 214,310
Total assets US$ in thousands 1,219,960 1,235,330 1,386,050 1,278,720 700,461
ROA -3.50% -13.59% 10.35% 8.16% 30.60%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-42,708K ÷ $1,219,960K
= -3.50%

Fulgent Genetics Inc's return on assets (ROA) has exhibited fluctuations over the past five years. In December 2020, the ROA was relatively high at 30.60%, indicating efficient utilization of assets to generate profits. However, by the end of December 2021, the ROA decreased to 8.16%, suggesting a decline in the company's ability to generate earnings from its assets.

In December 2022, the ROA improved to 10.35%, signaling a partial recovery in asset efficiency. Nevertheless, the trend reversed significantly in December 2023, with a negative ROA of -13.59%, indicating that assets were not effectively contributing to profitability. This negative trend continued into December 2024, with an ROA of -3.50%, suggesting ongoing challenges in utilizing assets efficiently to generate returns.

Overall, Fulgent Genetics Inc's ROA has been volatile, with significant fluctuations observed over the five-year period. It is essential for the company to focus on optimizing asset management strategies to improve profitability and enhance overall financial performance.