Supernus Pharmaceuticals Inc (SUPN)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 73,865 1,316 60,711 53,424 126,950
Total stockholders’ equity US$ in thousands 1,035,730 921,516 886,204 815,851 744,858
ROE 7.13% 0.14% 6.85% 6.55% 17.04%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $73,865K ÷ $1,035,730K
= 7.13%

The Return on Equity (ROE) for Supernus Pharmaceuticals Inc has shown fluctuations over the years. In December 31, 2020, the ROE stood at a healthy 17.04%, indicating efficient utilization of shareholder equity to generate profits. However, there was a noticeable decline in ROE by the end of 2021 to 6.55%, suggesting a decrease in profitability relative to the shareholder's equity.

The trend continued into the following years, with ROE hovering around the low single digits. By December 31, 2023, the ROE dropped significantly to a mere 0.14%, indicating a concerning decline in the firm's ability to generate profit from shareholders' investments.

Nevertheless, the company showed a slight improvement in ROE by the end of 2024, reaching 7.13%. This uptick could signal a potential rebound in profitability, but further analysis is needed to understand the factors that influenced this change.

Overall, the fluctuating ROE of Supernus Pharmaceuticals Inc highlights the importance of closely monitoring profitability relative to shareholder equity and investigating the underlying factors driving these changes to make informed investment decisions.