Hims Hers Health Inc (HIMS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -23,546 | -65,678 | -107,659 | -18,114 | -72,064 |
| Total stockholders’ equity | US$ in thousands | 344,029 | 311,741 | 334,619 | -146,874 | -139,793 |
| ROE | -6.84% | -21.07% | -32.17% | — | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-23,546K ÷ $344,029K
= -6.84%
Hims Hers Health Inc's return on equity (ROE) has displayed a declining trend over the past few years, with values of -6.84% in 2023, -21.07% in 2022, and -32.17% in 2021. The negative ROEs indicate that the company's net income is insufficient to generate a positive return for its shareholders based on the equity invested. This suggests that the company is facing challenges in efficiently utilizing its equity to generate profits. Further investigation into the company's financial performance and operational efficiency is warranted to understand the underlying factors contributing to the downward trend in ROE.