Glaukos Corp (GKOS)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-134,661	-99,195	-49,593	-120,348	15,424
Total stockholders’ equity	US$ in thousands	461,766	530,005	587,151	667,449	673,272
ROE		-29.16%	-18.72%	-8.45%	-18.03%	2.29%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-134,661K ÷ $461,766K
= -29.16%

Glaukos Corporation's return on equity (ROE) has shown a trend of fluctuations over the past five years. The ROE was positive in 2019 at 2.29%, indicating that the company was generating a profit relative to its equity investments. However, there was a significant decline in 2020, with the ROE dropping to -18.03%, reflecting a decrease in profitability or an inefficient use of equity.

In the following years, the ROE continued to show negative figures, reaching its lowest point in 2023 at -29.16%. This indicates that Glaukos Corporation's profitability relative to shareholders' equity deteriorated further during this period.

The negative ROE figures suggest that the company may be facing challenges in generating profits from its equity capital. It could be a result of various factors such as declining revenues, increasing expenses, or inefficient asset utilization.

Overall, the decreasing trend in Glaukos Corporation's ROE over the five-year period raises concerns about the company's ability to provide a satisfactory return to its shareholders based on the equity invested. This performance should prompt further analysis to identify the underlying factors driving the declining ROE and assess potential strategies for improvement.