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.
Peer comparison
Dec 31, 2023