Progyny Inc (PGNY)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 62,037 | 30,358 | 65,769 | 46,459 | -8,569 |
| Total stockholders’ equity | US$ in thousands | 553,429 | 376,968 | 251,822 | 166,947 | 114,271 |
| ROE | 11.21% | 8.05% | 26.12% | 27.83% | -7.50% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $62,037K ÷ $553,429K
= 11.21%
Progyny Inc's return on equity (ROE) has fluctuated over the past five years. In 2019, the company experienced a negative ROE of -7.50%, indicating that the company generated a loss relative to its shareholders' equity. However, there has been a positive turnaround since then, with ROE steadily increasing to 27.83% in 2020 and 26.12% in 2021, reflecting a significant improvement in the company's profitability and efficiency in generating returns for shareholders.
In 2022, the ROE slightly decreased to 8.05%, suggesting a potential dip in profitability or changes in the company's capital structure. However, in 2023, the ROE increased to 11.21%, indicating a recovery in generating returns on equity.
Overall, while Progyny Inc has shown some variability in its ROE over the years, the company has managed to significantly improve its financial performance and return on equity compared to the negative ROE in 2019. The positive trend in ROE signals that Progyny Inc is effectively utilizing its shareholders' equity to generate profits and create value for its investors.
Peer comparison
Dec 31, 2023