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ACADIA Pharmaceuticals (ACADIA Pharmaceuticals) ROE % : 46.15% (As of Dec. 2023)


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What is ACADIA Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ACADIA Pharmaceuticals's annualized net income for the quarter that ended in Dec. 2023 was $183.2 Mil. ACADIA Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $397.0 Mil. Therefore, ACADIA Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 was 46.15%.

The historical rank and industry rank for ACADIA Pharmaceuticals's ROE % or its related term are showing as below:

ACAD' s ROE % Range Over the Past 10 Years
Min: -75.58   Med: -44.18   Max: -14.73
Current: -15.6

During the past 13 years, ACADIA Pharmaceuticals's highest ROE % was -14.73%. The lowest was -75.58%. And the median was -44.18%.

ACAD's ROE % is ranked better than
70.81% of 1360 companies
in the Biotechnology industry
Industry Median: -44.355 vs ACAD: -15.60

ACADIA Pharmaceuticals ROE % Historical Data

The historical data trend for ACADIA Pharmaceuticals's ROE % 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.

* Premium members only.

ACADIA Pharmaceuticals ROE % Chart

ACADIA Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -39.93 -42.47 -28.75 -45.89 -14.73

ACADIA Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -40.41 -44.43 1.16 -68.79 46.15

Competitive Comparison of ACADIA Pharmaceuticals's ROE %

For the Biotechnology subindustry, ACADIA Pharmaceuticals's ROE %, along with its competitors' market caps and ROE % 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.


ACADIA Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, ACADIA Pharmaceuticals's ROE % distribution charts can be found below:

* The bar in red indicates where ACADIA Pharmaceuticals's ROE % falls into.



ACADIA Pharmaceuticals ROE % Calculation

ACADIA Pharmaceuticals's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-61.286/( (400.413+431.755)/ 2 )
=-61.286/416.084
=-14.73 %

ACADIA Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=183.188/( (362.174+431.755)/ 2 )
=183.188/396.9645
=46.15 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


ACADIA Pharmaceuticals  (NAS:ACAD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=183.188/396.9645
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(183.188 / 924.164)*(924.164 / 690.748)*(690.748 / 396.9645)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.82 %*1.3379*1.7401
=ROA %*Equity Multiplier
=26.52 %*1.7401
=46.15 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=183.188/396.9645
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (183.188 / 158.812) * (158.812 / 139.776) * (139.776 / 924.164) * (924.164 / 690.748) * (690.748 / 396.9645)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1535 * 1.1362 * 15.12 % * 1.3379 * 1.7401
=46.15 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


ACADIA Pharmaceuticals ROE % Related Terms

Thank you for viewing the detailed overview of ACADIA Pharmaceuticals's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


ACADIA Pharmaceuticals (ACADIA Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
12830 El Camino Real, Suite 400, San Diego, CA, USA, 92130
Acadia Pharmaceuticals Inc is a biotechnology company that develops and commercializes biopharmaceutical products to address central nervous system disorders. The company aims to discover small molecule drugs that address disorders such as Parkinson's, Alzheimer's, and schizophrenia. Acadia also seeks to in-license or acquire complementary products and candidates. The company's patent applications claim proprietary technology, including novel methods of screening and chemical synthetic methods, novel drug targets, and novel compounds identified using its technology.
Executives
Austin D. Kim officer: EVP & General Counsel C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Brendan Teehan officer: EVP, COO, Head of Commercial C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Stephen Davis director, officer: PRESIDENT AND CEO ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
James Kihara officer: Principal Accounting Officer C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Mark C. Schneyer officer: Chief Financial Officer C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Laura Brege director C/O ONYX PHARMACEUTICALS, INC., 2100 POWELL STREET, EMERYVILLE CA 94608
Baker Bros. Advisors Lp 10 percent owner 860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014
Douglas J Williamson officer: Executive VP, Research & Dev AVADEL PHARMACEUTICALS PLC, 10 EARLSFORT TERRACE, DUBLIN L2 D02 T390
Srdjan R. Stankovic officer: EVP C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Adora Ndu director C/O DBV TECHNOLOGIES S.A., 177-181 AVENUE PIERRE BROSSOLETTE, MONTROUGE I0 92120
Elena Ridloff officer: EVP and CFO C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Michael J. Yang officer: EVP AND CCO C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Elizabeth A. Garofalo director C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
James M Daly director INCYTE CORPORATION EXPERIMENTAL STATION, RTE 141 & HENRY CLAY RD. BLDG E336, WILMINGTON DE 19880
Eric Alejandro Miller officer: Controller & PAO C/O ACADIA PHARMACEUTICALS INC., 3611 VALLEY CENTRE DRIVE, SUITE 300, SAN DIEGO CA 92130