Pacira BioSciences, Inc. (PCRX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -99,560 | 41,955 | 15,909 | 41,980 | 145,523 |
| Total stockholders’ equity | US$ in thousands | 778,348 | 870,130 | 775,010 | 730,408 | 619,688 |
| ROE | -12.79% | 4.82% | 2.05% | 5.75% | 23.48% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-99,560K ÷ $778,348K
= -12.79%
The return on equity (ROE) for Pacira BioSciences, Inc. has exhibited fluctuations over the past five years. In December 2020, the ROE stood at a healthy 23.48%, indicating that the company generated $0.2348 in net income for every dollar of shareholders' equity during that period. However, by December 2021, the ROE dropped to 5.75%, suggesting a decline in profitability efficiency. The trend continued into December 2022, where the ROE decreased further to 2.05%, signaling potentially lower returns for shareholders.
There was a slight improvement in December 2023, with the ROE increasing to 4.82%, indicating a modest recovery in profitability. However, by December 2024, the ROE turned negative at -12.79%, reflecting that the company experienced a net loss in that period relative to its shareholders' equity.
Overall, the declining trend in ROE from 2020 to 2024 raises concerns about Pacira BioSciences' ability to generate sustainable returns for its shareholders and may indicate underlying issues affecting the company's profitability and operational efficiency. It would be prudent for investors and stakeholders to further investigate the reasons behind these fluctuations in ROE to assess the company's financial health and performance accurately.
Peer comparison
Dec 31, 2024