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Merus Labs International (Merus Labs International) ROE % : -2.49% (As of Mar. 2017)


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What is Merus Labs International ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Merus Labs International's annualized net income for the quarter that ended in Mar. 2017 was $-3.50 Mil. Merus Labs International's average Total Stockholders Equity over the quarter that ended in Mar. 2017 was $140.46 Mil. Therefore, Merus Labs International's annualized ROE % for the quarter that ended in Mar. 2017 was -2.49%.

The historical rank and industry rank for Merus Labs International's ROE % or its related term are showing as below:

MSLI's ROE % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 4.16
* Ranked among companies with meaningful ROE % only.

Merus Labs International ROE % Historical Data

The historical data trend for Merus Labs International'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.

Merus Labs International ROE % Chart

Merus Labs International Annual Data
Trend Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -91.39 -7.64 -10.65 -0.15 -5.03

Merus Labs International Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 -7.26 -10.34 -0.13 -12.99 -2.49

Competitive Comparison of Merus Labs International's ROE %

For the Drug Manufacturers - Specialty & Generic subindustry, Merus Labs International'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.


Merus Labs International's ROE % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merus Labs International's ROE % distribution charts can be found below:

* The bar in red indicates where Merus Labs International's ROE % falls into.



Merus Labs International ROE % Calculation

Merus Labs International's annualized ROE % for the fiscal year that ended in Sep. 2016 is calculated as

ROE %=Net Income (A: Sep. 2016 )/( (Total Stockholders Equity (A: Sep. 2015 )+Total Stockholders Equity (A: Sep. 2016 ))/ count )
=-7.216/( (136.286+150.874)/ 2 )
=-7.216/143.58
=-5.03 %

Merus Labs International's annualized ROE % for the quarter that ended in Mar. 2017 is calculated as

ROE %=Net Income (Q: Mar. 2017 )/( (Total Stockholders Equity (Q: Dec. 2016 )+Total Stockholders Equity (Q: Mar. 2017 ))/ count )
=-3.504/( (140.87+140.055)/ 2 )
=-3.504/140.4625
=-2.49 %

* 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 (Mar. 2017) net income data. ROE % is displayed in the 30-year financial page.


Merus Labs International  (NAS:MSLI) 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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=-3.504/140.4625
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-3.504 / 67.672)*(67.672 / 265.8245)*(265.8245 / 140.4625)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.18 %*0.2546*1.8925
=ROA %*Equity Multiplier
=-1.32 %*1.8925
=-2.49 %

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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=-3.504/140.4625
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-3.504 / -2.404) * (-2.404 / 4.22) * (4.22 / 67.672) * (67.672 / 265.8245) * (265.8245 / 140.4625)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.4576 * -0.5697 * 6.24 % * 0.2546 * 1.8925
=-2.49 %

Note: The net income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.


Merus Labs International ROE % Related Terms

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Merus Labs International (Merus Labs International) Business Description

Traded in Other Exchanges
N/A
Address
Merus Labs International Inc was incorporated on October 1, 2012 in British Columbia. The Company is a specialty pharmaceutical company. It acquires prescription medicines in various categories which include on patent but at maturity stage of product life cycle; branded generics; under promoted products; Niche market pharmaceuticals; and products with annual sales below critical threshold for large pharma. The Company competes with multinational pharmaceutical development corporations to small, single product companies that may limit their activities to a particular therapeutic area or region or territory.

Merus Labs International (Merus Labs International) Headlines