Veracyte Inc (VCYT)

Return on equity (ROE)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Net income (ttm) US$ in thousands 26,335 33,049 24,138 -9,268 -54,041 -68,177 -71,997 -47,548 -26,653 -27,783 -36,560 -43,244 -48,650 -48,156 -75,563 -73,079 -63,074 -65,061 -34,909 -34,323
Total stockholders’ equity US$ in thousands 1,221,060 1,194,940 1,175,970 1,176,040 1,132,520 1,118,650 1,044,100 1,054,060 1,082,720 1,081,260 1,075,200 1,048,180 1,064,150 1,085,190 1,096,510 1,107,080 971,177 974,231 421,232 422,725
ROE 2.16% 2.77% 2.05% -0.79% -4.77% -6.09% -6.90% -4.51% -2.46% -2.57% -3.40% -4.13% -4.57% -4.44% -6.89% -6.60% -6.49% -6.68% -8.29% -8.12%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $26,335K ÷ $1,221,060K
= 2.16%

The analysis of Veracyte Inc.'s return on equity (ROE) over the period from September 30, 2020, to June 30, 2025, reveals a notable transition in the company's profitability and efficiency in generating net income relative to shareholders' equity. Throughout the period, the company's ROE consistently remained negative, indicating that it was generating losses from shareholders' investments during this time frame. The ROE figures ranged from a high of -2.46% on June 30, 2022, to a low of -8.29% on December 31, 2020, illustrating persistent challenges in achieving positive profitability.

Between September 2020 and March 2023, there was a gradual upward trend in ROE, reflecting slight improvements in net income relative to equity. For instance, the ROE improved from -8.12% in September 2020 to -2.57% in March 2023, suggesting a reduction in net losses or increased efficiency in utilizing shareholders’ equity. This period indicates efforts toward operational betterment, with the company nearing a break-even point from a profitability standpoint.

Starting in December 2023, the ROE turned positive, first reaching 2.05% and subsequently improving to 2.77% by March 2025. This shift from negative to positive territory marks a significant inflection point, signifying that the company has transitioned into generating net income on shareholders’ equity. The improving ROE reflects enhanced operational performance, cost management, or revenue growth that is now translating into profitability attributable to shareholders.

In the most recent data as of June 2025, the ROE slightly declined to 2.16%, but remained positive, indicating sustained profitability albeit with some fluctuations. The trajectory from deep negative values toward positive performance signals a notable turnaround, which could be attributed to strategic initiatives, product commercialization, or operational efficiencies.

Overall, the company's ROE trend over this period illustrates a positive shift from consistent losses towards generating profits, highlighting an improving financial performance and potentially increasing value for shareholders. The transition from negative to positive ROE suggests that the company's strategic measures and operational changes are beginning to yield tangible results, although the overall figures reflect ongoing challenges and the need for sustained performance improvements.