Sarepta Therapeutics Inc (SRPT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 235,239 | -535,977 | -703,488 | -418,780 | -554,128 |
| Total stockholders’ equity | US$ in thousands | 1,527,740 | 859,337 | 384,950 | 928,009 | 761,759 |
| ROE | 15.40% | -62.37% | -182.75% | -45.13% | -72.74% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $235,239K ÷ $1,527,740K
= 15.40%
The return on equity (ROE) of Sarepta Therapeutics Inc has shown significant fluctuations over the years, ranging from -182.75% to 15.40%.
In 2020, the ROE was -72.74%, indicating that the company's net income was insufficient to cover its equity base. This was a concerning sign for investors and stakeholders as the company was not effectively utilizing its shareholders' equity to generate profit.
However, there was a slight improvement in 2021, with the ROE improving to -45.13%. While still negative, this shows some progress in the company's profitability compared to the previous year.
The most alarming ROE figure was observed in 2022, standing at -182.75%. This indicates that the company was incurring significant losses compared to its equity base, which could be attributed to various factors such as high expenses or low revenue generation.
In 2023, the ROE improved to -62.37%, indicating that the company's financial performance was still not optimal but showed some signs of recovery.
Finally, in 2024, there was a notable improvement in the ROE, recording a positive value of 15.40%. This suggests that the company was able to generate a return on equity for its shareholders, which is a positive indicator of profitability and efficiency in utilizing equity.
Overall, the fluctuating ROE figures for Sarepta Therapeutics Inc raise concerns about the company's financial performance and efficiency in generating returns for its shareholders. Investors and analysts may need to closely monitor the company's financial strategies and operations to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2024