Lantheus Holdings Inc (LNTH)
Return on equity (ROE)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 312,442 | 326,661 | 28,067 | -71,279 | -13,473 |
Total stockholders’ equity | US$ in thousands | 1,088,010 | 815,892 | 447,147 | 464,439 | 514,205 |
ROE | 28.72% | 40.04% | 6.28% | -15.35% | -2.62% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $312,442K ÷ $1,088,010K
= 28.72%
Based on the data provided, Lantheus Holdings Inc's return on equity (ROE) has exhibited significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
In December 2020, the company's ROE was -2.62%, indicating that the company generated a negative return on shareholder's equity for that year, which could be a cause for concern. This negative ROE suggests that the company may not have efficiently utilized its equity to generate profits.
The negative trend continued in December 2021, with an ROE of -15.35%, implying a further deterioration in the company's ability to generate returns for its shareholders. A persistently negative ROE over multiple years raises questions about the company's profitability and efficiency.
However, there was a turnaround in December 2022, with an ROE of 6.28%, indicating that the company started to generate a positive return on equity. This improvement could be a result of strategic initiatives or operational enhancements that boosted profitability and efficiency.
The positive trend continued in the following years, with a significant increase in ROE to 40.04% in December 2023 and 28.72% in December 2024. These substantial improvements suggest that Lantheus Holdings Inc has successfully increased its profitability and efficiency in utilizing shareholder's equity to generate returns.
Overall, the fluctuating ROE of Lantheus Holdings Inc over the five-year period highlights the importance of closely monitoring financial performance metrics to assess the company's financial health and profitability. The recent positive trend in ROE indicates a potential improvement in the company's operational effectiveness and financial performance.
Peer comparison
Dec 31, 2024