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.
Peer comparison
Dec 31, 2023