Hims Hers Health Inc (HIMS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 126,038 | -23,546 | -65,678 | -107,659 | -18,114 |
| Total stockholders’ equity | US$ in thousands | 476,716 | 344,029 | 311,741 | 334,619 | -146,874 |
| ROE | 26.44% | -6.84% | -21.07% | -32.17% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $126,038K ÷ $476,716K
= 26.44%
Based on the provided data, Hims Hers Health Inc's return on equity (ROE) has shown significant fluctuations over the years.
In 2020, the ROE was not available, indicating potentially incomplete or inadequate financial information for that period.
In 2021, the ROE was -32.17%, suggesting that the company generated a net loss relative to its equity base. This may indicate operational inefficiencies or financial challenges during that year.
By 2022, the ROE improved to -21.07%, although it still remained negative. This could signal some progress in addressing the issues that led to the negative return in the previous year.
In 2023, the ROE further increased to -6.84%, indicating a continued but gradual improvement in the company's ability to generate profit relative to shareholder equity.
Notably, in 2024, the ROE significantly improved to 26.44%, turning positive for the first time in the data series. This suggests that the company made substantial improvements in profitability and efficiency, delivering higher returns to its shareholders compared to the equity invested.
Overall, the trend in Hims Hers Health Inc's ROE indicates a mixed performance, with challenges in some years but a notable turnaround and positive performance in 2024. It will be important for stakeholders to monitor future ROE trends to assess the company's financial health and efficiency in utilizing shareholder equity.
Peer comparison
Dec 31, 2024