Krystal Biotech Inc (KRYS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	10,932	-139,975	-69,570	-32,167	-19,088
Total assets	US$ in thousands	818,355	558,450	626,295	310,844	209,023
ROA		1.34%	-25.06%	-11.11%	-10.35%	-9.13%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $10,932K ÷ $818,355K
= 1.34%

The return on assets (ROA) for Krystal Biotech Inc has shown significant variability over the past five years. In 2023, the ROA improved to 1.34%, indicating that the company generated a positive return on its assets. This is a positive sign as it suggests that the company is effectively utilizing its assets to generate profits.

In contrast, in 2022, the ROA was -25.06%, reflecting a substantial decrease in profitability compared to the previous year. This negative ROA implies that the company was not efficient in generating profits from its assets and may have incurred losses during that period.

Similarly, in 2021, the ROA was -11.11%, followed by -10.35% in 2020, and -9.13% in 2019. These negative ROA figures indicate that Krystal Biotech Inc struggled to generate positive returns from its assets in those years.

Overall, the positive ROA in 2023 suggests an improvement in the company's asset utilization and profitability compared to the preceding years. However, the negative ROA figures in previous years indicate a historical trend of inefficiency in generating returns from assets, which could be a concern for stakeholders. Continued monitoring of ROA is essential to assess the company's financial performance and efficiency in utilizing its assets effectively.