ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. XenoPort's annualizedNet Income for the quarter that ended in Mar. 2016 was $-58.26 Mil.
XenoPort's average Total Assets over the quarter that ended in Mar. 2016 was $157.09 Mil. Therefore, XenoPort's annualized ROA % for the quarter that ended in Mar. 2016 was -37.08%.
The historical rank and industry rank for XenoPort's ROA % or its related term are showing as below:
XNPT's ROA % is not ranked *
in the Biotechnology industry.
Industry Median: -35.515 * Ranked among companies with meaningful ROA % only.
XenoPort ROA % Historical Data
The historical data trend for XenoPort's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, XenoPort's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
XenoPort's ROA % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, XenoPort's ROA % distribution charts can be found below:
* The bar in red indicates where XenoPort's ROA % falls into.
XenoPort ROA % Calculation
XenoPort's annualized ROA % for the fiscal year that ended in Dec. 2015 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2016) net income data.
ROA % is displayed in the 30-year financial page.
XenoPort (NAS:XNPT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
XenoPort ROA % Related Terms
Thank you for viewing the detailed overview of XenoPort's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
XenoPort Inc is a Delaware corporation was incorporated on May 19, 1999. The Company is a biopharmaceutical company focused on developing and commercializing a portfolio of internally discovered product candidates for the potential treatment of neurological and other disorders. Its product candidates are prodrugs that are created by modifying the chemical structure of currently marketed drugs, referred to as parent drugs, and are designed to correct limitations in the oral absorption, distribution and metabolism of the parent drug. Its marketed product is approved in the United States, where it is known as Horizant Extended-Release Tablets, and in Japan, where it is known as Regnite Extended-Release Tablets. Horizant has been approved by the U.S. Food and Drug Administration, or FDA, for the treatment of moderate-to-severe primary restless legs syndrome, or RLS, in adults and for the management of postherpetic neuralgia, or PHN, in adults. Restless legs syndrome, also known as Willis-Ekbom Disease, is a neurological disorder characterized by an urge to move the legs, usually caused or accompanied by uncomfortable and unpleasant sensations in the legs. PHN is a neuropathic pain syndrome that can follow the healing of an outbreak of herpes zoster, commonly known as shingles. Regnite has been approved by the Japanese Ministry of Health, Labor and Welfare, or MHLW, as a treatment for patients with moderate-to-severe RLS. It is also engaged with third parties for the development of arbaclofen placarbil, or AP, a potential treatment for spasticity in patients with spinal cord injury; and XP21279, a potential treatment for patients with advanced idiopathic Parkinson's disease. The Company faces competition from manufacturers of generic drugs. The Company is subject to regulation by regional, national, state and local agencies, including the Department of Justice, the Federal Trade Commission, the Office of Inspector General of the U.S. Department of Health and Human Services and other regulatory bodies, as well as governmental authorities in those foreign countries in which it may commercialize its products.
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