Regeneron Pharmaceuticals Inc (REGN)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,412,600	3,953,600	4,338,400	8,075,300	3,513,200
Total assets	US$ in thousands	37,759,400	33,080,200	29,214,500	25,434,800	17,163,300
ROA		11.69%	11.95%	14.85%	31.75%	20.47%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $4,412,600K ÷ $37,759,400K
= 11.69%

Regeneron Pharmaceuticals Inc's return on assets (ROA) has demonstrated fluctuating performance over the years. In 2020, the ROA stood at a healthy 20.47%, indicating the company generated $0.2047 in net income for every dollar of assets. Subsequently, the ROA significantly improved to 31.75% by the end of 2021, reflecting enhanced efficiency in asset utilization and profitability. However, there was a decline in ROA to 14.85% by the end of 2022, suggesting a potential decrease in profitability relative to the company's asset base.

Moreover, the trend continued as the ROA further decreased to 11.95% by the end of 2023, signaling a continuation of the declining profitability trend. In the most recent period of December 31, 2024, the ROA showed a slight decrease to 11.69%. This performance indicates that Regeneron Pharmaceuticals Inc may be facing challenges in optimizing its asset efficiency and generating profits from its asset base.

Overall, the varying trend in ROA suggests that Regeneron Pharmaceuticals Inc should focus on effectively managing its assets to enhance profitability and ensure sustainable growth in the future. Critical evaluation of the utilization of assets and implementation of strategies to improve operational efficiency and profitability will be essential for the company to maintain its financial health and competitive position in the market.