Return on Equity (ROE)
since 2018
Calculation
Moderna Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | -34.03% | = | 100 | × | (4,714) | ÷ | 13,854) |
| Dec 31, 2022 | 43.73% | = | 100 | × | 8,362) | ÷ | 19,123) |
| Dec 31, 2021 | 86.26% | = | 100 | × | 12,202) | ÷ | 14,145) |
| Dec 31, 2020 | -29.17% | = | 100 | × | (747) | ÷ | 2,561) |
| Dec 31, 2019 | -43.75% | = | 100 | × | (514) | ÷ | 1,175) |
| Dec 31, 2018 | -25.14% | = | 100 | × | (385) | ÷ | 1,530) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 US$ in millions
The financial performance from 2018 to 2023 is characterized by extreme volatility in profitability and a significant expansion and subsequent contraction of the capital base. The trajectory indicates a transition from a loss-making phase to a period of exceptional earnings, followed by a return to net losses.
- Net Income Trajectory
- Between 2018 and 2020, net losses widened from US$ 385 million to US$ 747 million. This trend reversed sharply in 2021, with net income surging to US$ 12,202 million, and remaining strong at US$ 8,362 million in 2022. However, this period of profitability ended in 2023, as the company recorded a net loss of US$ 4,714 million.
- Stockholders' Equity Evolution
- Equity showed a massive increase starting in 2021, rising from US$ 2,561 million in 2020 to a peak of US$ 19,123 million by the end of 2022. This growth represents a substantial increase in the company's book value. In 2023, stockholders' equity declined to US$ 13,854 million, a decrease driven by the impact of the net loss reported for that fiscal year.
- Return on Equity (ROE) Analysis
- ROE values remained negative from 2018 to 2020, reaching a low of -43.75% in 2019. A dramatic shift occurred in 2021, where ROE peaked at 86.26%, reflecting the high efficiency of equity in generating profit during that specific window. This ratio moderated to 43.73% in 2022 before reverting to a negative value of -34.03% in 2023, indicating that the company ceased to generate a positive return on shareholders' investments in the final year of the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Moderna Inc., ROE, long-term trends, comparison to competitors
| Moderna Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | -34.03% | 46.94% | 107.78% | 27.27% | 8.91% | 48.65% | 24.81% | 51.11% | 0.97% | 2.38% | 15.22% | 12.83% | 20.59% |
| Dec 31, 2022 | 43.73% | 68.60% | 178.97% | 20.37% | 14.39% | 58.64% | 21.62% | 23.36% | 31.57% | 32.79% | 19.14% | 15.80% | 23.88% |
| Dec 31, 2021 | 86.26% | 74.91% | 87.96% | 19.46% | 14.24% | 62.16% | 29.55% | 28.20% | 34.17% | 28.47% | 43.03% | 18.94% | 23.19% |
| Dec 31, 2020 | -29.17% | 35.30% | 77.20% | -23.84% | 9.17% | 109.79% | 0.68% | 23.25% | 27.91% | 15.21% | 31.86% | 18.47% | 31.22% |
| Dec 31, 2019 | -43.75% | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | -25.14% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Moderna Inc., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Moderna Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | -34.03% | 20.65% |
| Dec 31, 2022 | 43.73% | 27.99% |
| Dec 31, 2021 | 86.26% | 29.75% |
| Dec 31, 2020 | -29.17% | 17.22% |
| Dec 31, 2019 | -43.75% | 27.68% |
| Dec 31, 2018 | -25.14% | 26.29% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Comparison to Industry (Health Care)
Moderna Inc., ROE, long-term trends, comparison to industry (health care)
| Moderna Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | -34.03% | 19.40% |
| Dec 31, 2022 | 43.73% | 24.82% |
| Dec 31, 2021 | 86.26% | 25.44% |
| Dec 31, 2020 | -29.17% | 16.70% |
| Dec 31, 2019 | -43.75% | 23.30% |
| Dec 31, 2018 | -25.14% | 21.27% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).