Fulgent Genetics Inc (FLGT)

Return on assets (ROA)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net income (ttm) US$ in thousands -167,825 -63,508 -48,682 -25,916 143,403 271,574 392,377 460,652 507,364 569,332 493,448 416,957 214,310 47,707 2,531 -459 -411 -2,168 -4,225 -5,605
Total assets US$ in thousands 1,235,330 1,358,400 1,354,580 1,376,770 1,386,050 1,405,780 1,461,660 1,465,590 1,278,720 1,204,670 1,049,860 999,083 700,461 247,311 95,915 89,325 88,756 61,145 56,436 55,652
ROA -13.59% -4.68% -3.59% -1.88% 10.35% 19.32% 26.84% 31.43% 39.68% 47.26% 47.00% 41.73% 30.60% 19.29% 2.64% -0.51% -0.46% -3.55% -7.49% -10.07%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-167,825K ÷ $1,235,330K
= -13.59%

Fulgent Genetics Inc's return on assets (ROA) has exhibited significant variability over the past eight quarters. The ROA has shown a declining trend, starting at a high of 31.43% in Q1 2022 and steadily decreasing to -13.59% in Q4 2023. This negative trend indicates that the company's ability to generate profits from its assets has been weakening over time.

The decreasing ROA could suggest that the company is becoming less efficient in generating earnings relative to its total assets. The sharp decline in ROA raises concerns about the company's operational efficiency and profitability. Investors and analysts may view this as a red flag, signaling potential challenges in generating returns on the resources employed.

Further investigation into the underlying factors contributing to the declining ROA, such as changes in revenue, expenses, or asset management, would be essential to understand the reasons behind these negative trends. It is crucial for Fulgent Genetics Inc to address these issues promptly and implement strategies to improve its ROA to ensure long-term financial sustainability.