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.
Peer comparison
Dec 31, 2024