Lantheus Holdings Inc (LNTH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 326,661 | 28,067 | -71,279 | -13,473 | 31,667 |
| Total stockholders’ equity | US$ in thousands | 815,892 | 447,147 | 464,439 | 514,205 | 114,601 |
| ROE | 40.04% | 6.28% | -15.35% | -2.62% | 27.63% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $326,661K ÷ $815,892K
= 40.04%
Lantheus Holdings Inc's Return on Equity (ROE) has exhibited significant fluctuations over the past five years. Starting with a strong positive ROE of 27.63% in 2019, the company's performance deteriorated in 2020 with a negative ROE of -2.62%. This trend continued into 2021, where the ROE further decreased to -15.35%, indicating poor profitability relative to shareholders' equity.
However, there was a substantial turnaround in 2022, as the ROE improved to 6.28%, although it remained relatively low. The most recent data for 2023 shows a notable surge in ROE to 40.04%, suggesting a significant enhancement in the company's profitability and efficiency in generating returns for its shareholders.
The varying levels of ROE over the years indicate fluctuations in the company's ability to generate profits from its equity capital. It is crucial for Lantheus Holdings Inc to sustain and build upon this positive momentum to create long-term value for its shareholders.
Peer comparison
Dec 31, 2023