Innoviva Inc (INVA)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	179,722	213,921	265,854	224,402	157,288
Total stockholders’ equity	US$ in thousands	674,955	565,788	414,743	539,912	313,495
ROE		26.63%	37.81%	64.10%	41.56%	50.17%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $179,722K ÷ $674,955K
= 26.63%

Innoviva Inc's return on equity (ROE) has experienced fluctuations over the past five years. The ROE was 26.63% as of December 31, 2023, showing a decrease from 37.81% in 2022. This decline in ROE suggests a potential decrease in profitability relative to shareholders' equity.

Comparing 2023 to 2021, where the ROE was 64.10%, there has been a significant reduction in profitability efficiency. The company's ROE was relatively stable in 2020 at 41.56% but showed a decline from 50.17% in 2019.

It is important for stakeholders to closely monitor the factors influencing the ROE trend to understand the company's ability to generate profits from the shareholders' equity. Any persistent downward trend may warrant further analysis to identify underlying issues affecting the company's financial performance.