Neurocrine Biosciences Inc (NBIX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 341,300 | 249,700 | 154,500 | 89,600 | 407,300 |
| Total stockholders’ equity | US$ in thousands | 2,589,700 | 2,232,000 | 1,707,800 | 1,374,000 | 1,126,200 |
| ROE | 13.18% | 11.19% | 9.05% | 6.52% | 36.17% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $341,300K ÷ $2,589,700K
= 13.18%
Neurocrine Biosciences Inc's return on equity (ROE) has shown a declining trend over the past five years. Starting at a relatively high level of 36.17% on December 31, 2020, the ROE decreased significantly to 6.52% by December 31, 2021. However, the company managed to improve its ROE slightly in the following years, with values of 9.05% in 2022, 11.19% in 2023, and 13.18% on December 31, 2024.
The declining trend in ROE from 2020 to 2021 could indicate a decrease in the company's profitability and/or efficiency in generating returns from shareholders' equity. However, the subsequent improvements in ROE in the later years may suggest that Neurocrine Biosciences Inc has taken steps to enhance its profitability and efficiency, leading to better returns for its equity holders.
Overall, while the company experienced fluctuations in its ROE over the past five years, the recent trend of increasing ROE values is a positive sign that the company is moving towards improved profitability and generating better returns on its shareholders' equity.
Peer comparison
Dec 31, 2024