Krystal Biotech Inc (KRYS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	778,641	522,231	593,576	292,084	202,914
ROE		1.40%	-26.80%	-11.72%	-11.01%	-9.41%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $10,932K ÷ $778,641K
= 1.40%

Krystal Biotech Inc's return on equity (ROE) has shown a mixed performance over the past five years. In 2023, the ROE improved to 1.40%, indicating a modest return on shareholders' equity. However, in 2022, the company experienced a significant decline in ROE to -26.80%, reflecting a substantial decrease in profitability relative to the equity invested. The negative trend continued from 2021 to 2020, with ROE figures of -11.72% and -11.01%, respectively, suggesting persistent challenges in generating returns for shareholders. In 2019, the ROE was at -9.41%, underlying the ongoing struggle of the company to effectively utilize its equity to generate profits. Overall, the fluctuating and negative ROE figures of Krystal Biotech Inc signal potential inefficiencies in managing and utilizing shareholder equity for profitability.