Protagonist Therapeutics Inc (PTGX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-78,955	-127,393	-125,551	-66,150	-77,187
Total stockholders’ equity	US$ in thousands	336,677	215,608	300,021	279,606	79,964
ROE		-23.45%	-59.09%	-41.85%	-23.66%	-96.53%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-78,955K ÷ $336,677K
= -23.45%

Protagonist Therapeutics Inc's return on equity (ROE) has fluctuated significantly over the past five years, with a downward trend overall. The ROE was -23.45% in 2023, an improvement from -59.09% in 2022 and -41.85% in 2021 but still negative. The company's ROE was also negative in 2020 at -23.66% and even more drastically negative in 2019 at -96.53%.

The negative ROE values indicate that the company's net income has not been sufficient to generate a positive return for shareholders based on their equity investment. The declining trend in ROE over the years suggests ongoing challenges in generating profits relative to the shareholders' equity.

It is important for Protagonist Therapeutics Inc to address the underlying factors contributing to the negative ROE and implement strategies to improve profitability and efficiency, as a sustainable and positive ROE is essential for long-term shareholder value creation.