United Therapeutics Corporation (UTHR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,195,100 | 984,800 | 727,300 | 475,800 | 514,800 |
| Total stockholders’ equity | US$ in thousands | 6,444,000 | 5,984,800 | 4,796,700 | 3,958,900 | 3,395,200 |
| ROE | 18.55% | 16.46% | 15.16% | 12.02% | 15.16% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,195,100K ÷ $6,444,000K
= 18.55%
United Therapeutics Corporation's return on equity (ROE) has shown some fluctuations over the past five years.
Starting at 15.16% on December 31, 2020, the ROE decreased slightly to 12.02% by the end of 2021. This decline may indicate a potential decrease in the company's ability to generate profits from its shareholders' equity during that period.
However, the company's ROE rebounded in the following years, increasing to 15.16% by the end of 2022 and further to 16.46% by the end of 2023. These improvements suggest that United Therapeutics Corporation was able to enhance its profitability relative to its shareholder investments during these years.
Notably, the ROE reached its highest point at 18.55% by the end of 2024, showcasing a significant growth in the company's ability to generate returns on equity for its shareholders. This increase may indicate improved operational efficiency, better financial management, or successful strategic initiatives that contributed to the company's profitability.
Overall, while United Therapeutics Corporation experienced fluctuations in its ROE over the five-year period, the increasing trend in recent years suggests a positive trajectory in the company's profitability and value creation for its shareholders.
Peer comparison
Dec 31, 2024