Krystal Biotech Inc (KRYS)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	89,159	10,932	-139,975	-69,570	-32,167
Total stockholders’ equity	US$ in thousands	946,380	778,641	522,231	593,576	292,084
ROE		9.42%	1.40%	-26.80%	-11.72%	-11.01%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $89,159K ÷ $946,380K
= 9.42%

The return on equity (ROE) of Krystal Biotech Inc has undergone fluctuations over the past five years. As of December 31, 2020, the ROE stood at -11.01%, indicating that the company's net income was insufficient to generate a positive return relative to shareholders' equity. This negative trend continued into the following year, with the ROE decreasing to -11.72%.

By December 31, 2022, the ROE deteriorated further to -26.80%, highlighting significant challenges in utilizing shareholder equity effectively to generate profits. However, there was a turnaround in the company's performance by December 31, 2023, as the ROE improved to 1.40%, suggesting a more efficient utilization of equity to generate profit.

The most recent data available as of December 31, 2024, shows a more substantial improvement, with the ROE increasing to 9.42%. This positive development indicates that Krystal Biotech Inc has been able to enhance its profitability relative to the equity invested by shareholders over the year.

In summary, while the company faced challenges in the past with negative ROE figures, there has been a notable improvement in recent years, culminating in a positive ROE of 9.42% by the end of 2024. It will be important for investors and stakeholders to monitor Krystal Biotech's ROE in subsequent periods to assess the sustainability of this positive trend and the company's ability to continue generating returns on shareholders' equity.