Innoviva Inc (INVA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 23,392 | 179,722 | 213,921 | 265,854 | 224,402 |
| Total stockholders’ equity | US$ in thousands | 691,159 | 674,955 | 565,788 | 414,743 | 539,912 |
| ROE | 3.38% | 26.63% | 37.81% | 64.10% | 41.56% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $23,392K ÷ $691,159K
= 3.38%
Innoviva Inc's Return on Equity (ROE) has demonstrated fluctuations over the years based on the provided data. The ROE stood at 41.56% as of December 31, 2020, indicating a healthy level of profitability relative to shareholders' equity. The company's ROE then increased to 64.10% by December 31, 2021, suggesting improved efficiency in generating profits from shareholder investments.
However, the ROE experienced a decline to 37.81% by December 31, 2022, which may indicate challenges in maintaining profitability levels or managing equity efficiently. The trend continued with a further decrease to 26.63% by December 31, 2023, signaling potential concerns regarding the company's ability to generate returns on shareholders' equity.
By December 31, 2024, Innoviva Inc's ROE dropped significantly to 3.38%, reflecting a substantial decrease in profitability relative to equity. This sharp decline may raise red flags concerning the company's financial performance and its utilization of shareholder funds.
Overall, Innoviva Inc's ROE trend suggests a mix of successes and challenges in effectively leveraging shareholders' equity to generate profits. Further analysis of the company's financial health and operational efficiency would be necessary to understand the factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2024