Fulgent Genetics Inc (FLGT)
Return on equity (ROE)
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 stockholders’ equity | US$ in thousands | 1,133,230 | 1,136,100 | 1,269,880 | 1,165,880 | 569,387 |
ROE | -3.77% | -14.77% | 11.29% | 8.95% | 37.64% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-42,708K ÷ $1,133,230K
= -3.77%
Fulgent Genetics Inc's return on equity (ROE) has shown variability over the past five years. In December 31, 2020, the ROE was at a relatively high 37.64%, indicating that the company generated $0.3764 in profit for every dollar of shareholders' equity. However, there was a significant drop in ROE by the end of December 31, 2021, decreasing to 8.95%. This could suggest a decline in the company's profitability or efficiency in utilizing equity to generate earnings.
The ROE improved slightly to 11.29% by December 31, 2022, indicating a modest recovery in profitability. Nonetheless, the trend reversed sharply in the following years, with ROE turning negative. By December 31, 2023, the ROE stood at -14.77%, signifying that the company experienced a loss relative to its equity base, which could be a concerning sign for investors. The negative trend continued into December 31, 2024, with an ROE of -3.77%, indicating continuing challenges in generating profits from shareholders' equity.
In summary, Fulgent Genetics Inc's ROE has been volatile, reflecting fluctuations in profitability and potential challenges in effectively utilizing shareholders' equity to generate returns. Investors may need to closely monitor the company's financial performance and management strategies to assess its future profitability and sustainability.
Peer comparison
Dec 31, 2024