Penumbra Inc (PEN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	90,954	-2,002	5,284	-15,702	48,458
Total stockholders’ equity	US$ in thousands	1,178,940	998,858	953,927	641,498	485,892
ROE		7.71%	-0.20%	0.55%	-2.45%	9.97%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $90,954K ÷ $1,178,940K
= 7.71%

Penumbra Inc's return on equity (ROE) has been quite volatile over the past five years. In 2019, the ROE was at a relatively high level of 9.97%, indicating that the company was efficiently utilizing its equity to generate profits. However, in 2020, the ROE turned negative at -2.45%, suggesting that the company's profitability was adversely affected, possibly due to operational challenges or financial difficulties.

The negative trend continued in 2021, with the ROE improving slightly to 0.55%, but still below the industry average. The company managed to make a slight positive turn in 2022, with the ROE improving to -0.20%, indicating a potential recovery in profitability. However, the ROE remains negative, suggesting ongoing challenges in generating returns on equity.

In 2023, Penumbra Inc showed a significant improvement in ROE, reaching 7.71%. This indicates that the company has made progress in enhancing its profitability and efficiency in utilizing its equity to generate returns for its shareholders. It is important to monitor Penumbra Inc's future financial performance to assess whether this positive trend in ROE is sustainable and indicative of long-term profitability.