Myriad Genetics Inc (MYGN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -263,300 | -112,000 | -27,200 | -199,500 | 4,600 |
| Total stockholders’ equity | US$ in thousands | 783,200 | 885,800 | 967,800 | 918,200 | 1,088,900 |
| ROE | -33.62% | -12.64% | -2.81% | -21.73% | 0.42% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-263,300K ÷ $783,200K
= -33.62%
Myriad Genetics, Inc.'s return on equity (ROE) has fluctuated over the past five years, showing a downward trend from 2019 to 2023. The company experienced a negative ROE of -33.62% in 2023, indicating that the company's net income was insufficient to cover shareholder's equity, resulting in a loss. This follows a negative ROE of -12.64% in 2022 and -2.81% in 2021, suggesting that the company has been facing challenges in generating profit relative to its equity base.
In the previous periods, Myriad Genetics, Inc. had negative ROE percentages, with -21.73% in June 2020 and 0.42% in June 2019. The negative ROE figures reflect a situation where the company's net income was not adequate to compensate for the equity invested by shareholders. The improvement in ROE from -21.73% in June 2020 to -2.81% in December 2021 shows some progress but still signifies inefficiency in generating returns on equity.
Overall, the negative and declining trend in Myriad Genetics, Inc.'s ROE over the years raises concerns about the company's profitability and utilization of shareholder equity. It indicates that the company may be struggling to generate sufficient profits from its operations to provide decent returns to its shareholders. Further analysis and evaluation of the company's financial performance and strategies are warranted to address these challenges and enhance shareholder value.
Peer comparison
Dec 31, 2023