Regenxbio Inc (RGNX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-263,494	-280,321	127,840	-111,250	-94,733
Total stockholders’ equity	US$ in thousands	311,742	516,195	764,298	377,753	450,197
ROE		-84.52%	-54.31%	16.73%	-29.45%	-21.04%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-263,494K ÷ $311,742K
= -84.52%

Regenxbio Inc's return on equity (ROE) has varied significantly over the past five years. In 2023, the company reported a negative ROE of -84.52%, representing a substantial decline from the previous year's -54.31%. This indicates that the company's profitability in relation to shareholders' equity deteriorated considerably. The negative ROE suggests that the company is not generating profits sufficient to cover the costs of equity financing.

In contrast, in 2021, Regenxbio Inc achieved a positive ROE of 16.73%, signifying a strong performance and an ability to generate returns above the shareholders' investments. This positive ROE in 2021 marked a significant improvement from the negative ROE figures in 2020 and 2019, indicating enhanced profitability and efficiency in the utilization of equity.

Overall, the fluctuating trend in ROE for Regenxbio Inc reflects the company's varying financial performance and efficiency in generating profits from shareholders' investments. The negative ROE figures in recent years raise concerns about the company's ability to generate returns for its shareholders effectively, underlining the importance of monitoring and addressing the factors impacting profitability and equity utilization.