United Therapeutics Corporation (UTHR)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	984,800	727,300	475,800	514,800	-104,500
Total stockholders’ equity	US$ in thousands	5,984,800	4,796,700	3,958,900	3,395,200	2,780,400
ROE		16.46%	15.16%	12.02%	15.16%	-3.76%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $984,800K ÷ $5,984,800K
= 16.46%

United Therapeutics Corp has shown a positive trend in its return on equity (ROE) over the past five years. In particular, there was a noticeable improvement in ROE from 2021 to 2023, with the ratio increasing from 12.02% to 16.46%. This increase indicates that the company is generating a higher return on its shareholders' equity compared to previous years.

The positive ROE figures in 2023 and the preceding years suggest that United Therapeutics Corp is effectively utilizing its equity to generate profits. ROE is a key indicator of a company's profitability and efficiency in generating earnings from shareholders' investments.

It is important to note that in 2019, the company had a negative ROE of -3.76%, indicating a period of financial distress or inefficiency in that year. However, the subsequent years showed a clear turnaround with steady improvements in ROE, reflecting the company's efforts to enhance its financial performance.

Overall, the increasing trend in ROE for United Therapeutics Corp demonstrates management's ability to generate value for shareholders and suggests a positive outlook for the company's profitability and efficiency in utilizing its equity in the future.