Fulgent Genetics Inc (FLGT)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,136,100 1,258,700 1,259,760 1,264,450 1,266,680 1,277,050 1,304,760 1,306,130 1,158,750 1,036,780 912,729 801,566 569,387 186,955 87,043 81,372 82,777 54,526 51,142 49,961
ROE -14.77% -5.05% -3.86% -2.05% 11.32% 21.27% 30.07% 35.27% 43.79% 54.91% 54.06% 52.02% 37.64% 25.52% 2.91% -0.56% -0.50% -3.98% -8.26% -11.22%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-167,825K ÷ $1,136,100K
= -14.77%

Fulgent Genetics Inc's return on equity (ROE) has exhibited a declining trend over the past eight quarters. ROE measures the profitability of a company by indicating how efficiently it generates profit from its equity.

In Q4 2023, the ROE was negative at -14.77%, showing that the company incurred a net loss relative to its equity. This negative trend continued in Q3 2023 and Q2 2023, with ROE figures of -5.05% and -3.86% respectively, indicating ongoing financial challenges for the company.

The ROE improved slightly in Q1 2023 to -2.05%, but it remained negative. This contrasted with the positive ROE seen in the previous quarters of 2022. In Q4 2022, Fulgent Genetics Inc achieved an ROE of 11.32%, which increased significantly to 21.27% in Q3 2022 and further improved to 30.07% in Q2 2022. The highest ROE during this period was recorded in Q1 2022 at 35.27%.

Overall, the declining trend in ROE for Fulgent Genetics Inc suggests increasing challenges in generating profit from its equity compared to the performance seen in 2022. It is essential for the company to analyze the factors contributing to this trend and enact strategic measures to improve its profitability and efficiency in utilizing equity in the future.