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ARCA biopharma (ARCA biopharma) ROE % : -11.62% (As of Dec. 2023)


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What is ARCA biopharma ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ARCA biopharma's annualized net income for the quarter that ended in Dec. 2023 was $-4.36 Mil. ARCA biopharma's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $37.49 Mil. Therefore, ARCA biopharma's annualized ROE % for the quarter that ended in Dec. 2023 was -11.62%.

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

ABIO' s ROE % Range Over the Past 10 Years
Min: -113.79   Med: -48.99   Max: -13.57
Current: -13.59

During the past 13 years, ARCA biopharma's highest ROE % was -13.57%. The lowest was -113.79%. And the median was -48.99%.

ABIO's ROE % is ranked better than
72.1% of 1362 companies
in the Biotechnology industry
Industry Median: -44.085 vs ABIO: -13.59

ARCA biopharma ROE % Historical Data

The historical data trend for ARCA biopharma'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.

ARCA biopharma ROE % Chart

ARCA biopharma 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 -80.37 -35.98 -39.61 -21.41 -13.57

ARCA biopharma 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 -11.13 -13.10 -14.84 -14.76 -11.62

Competitive Comparison of ARCA biopharma's ROE %

For the Biotechnology subindustry, ARCA biopharma'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.


ARCA biopharma's ROE % Distribution in the Biotechnology Industry

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

* The bar in red indicates where ARCA biopharma's ROE % falls into.



ARCA biopharma ROE % Calculation

ARCA biopharma'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 )
=-5.339/( (41.673+37.02)/ 2 )
=-5.339/39.3465
=-13.57 %

ARCA biopharma'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 )
=-4.356/( (37.968+37.02)/ 2 )
=-4.356/37.494
=-11.62 %

* 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.


ARCA biopharma  (NAS:ABIO) 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
=-4.356/37.494
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-4.356 / 0)*(0 / 38.5225)*(38.5225 / 37.494)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.0274
=ROA %*Equity Multiplier
=N/A %*1.0274
=-11.62 %

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
=-4.356/37.494
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-4.356 / -4.356) * (-4.356 / -6.36) * (-6.36 / 0) * (0 / 38.5225) * (38.5225 / 37.494)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.6849 * N/A % * 0 * 1.0274
=-11.62 %

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.


ARCA biopharma ROE % Related Terms

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


ARCA biopharma (ARCA biopharma) Business Description

Traded in Other Exchanges
Address
10170 Church Ranch Way, Suite 100, Westminster, CO, USA, 80021
ARCA biopharma Inc is a clinical-stage biopharmaceutical company applying a precision medicine approach to the development and commercialization of targeted therapies for cardiovascular diseases. The company's product candidates are rNAPc2 as a potential treatment for COVID-19, the disease syndrome caused by the SARS-CoV-2 virus, and potentially other viral diseases and Gencaro for the treatment of atrial fibrillation, or AF, in patients with chronic heart failure, or HF. rNAPc2 targets COVID-19 patients with biomarker evidence of coagulopathy, while Gencaro is being developed for patients who have a genotype that identifies a drug target associated with heightened efficacy.
Executives
James P Flynn director 41 HARRIS CT, DANVILLE CA 94526
Funicular Funds, Lp 10 percent owner, other: See Footnote 1 2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Funicular Fund, Lp other: See Footnote 1 2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Jacob Ma-weaver other: See Remarks 2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Christopher David Ozeroff officer: S.V.P., General Counsel 8001 ARISTA PLACE, SUITE 200, BROOMFIELD CO 80021
Robert E Conway director C/O ARCA BIOPHARMA, INC, 8001 ARISTA PLACE, STE 430, BROOMFIELD CO 80021
C. Jeffrey Dekker officer: Chief Financial Officer 10170 CHURCH RANCH WAY, WESTMINSTER CO 80021
Thomas A Keuer officer: Chief Operating Officer C/O ARCA BIOPHARMA, INC., 10170 CHURCH RANCH WAY, STE 100, WESTMINSTER CO 80021
Brian L. Selby officer: VP, Finance 11080 CIRCLEPOINT ROAD, SUITE 140, WESTMINSTER CO 80020
Venrock Healthcare Capital Partners Lp 10 percent owner 530 FIFTH AVENUE, 22ND FLOOR, NEW YORK NY 10036
Scott D Sandell 10 percent owner
David M Mott 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Joshua Makower 10 percent owner 1212 TERRA BELLA AVENUE, MOUNTAIN VIEW CA 94043
Forest Baskett 10 percent owner
Peter J Barris 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202

ARCA biopharma (ARCA biopharma) Headlines

From GuruFocus

Jacob Ma-Weaver Joins ARCA biopharma Board of Directors

By GuruFocusNews GuruFocusNews 06-21-2022

Jacob Ma-Weaver Joins ARCA biopharma Board of Directors

By GuruFocusNews GuruFocusNews 07-01-2022

James Flynn Joins ARCA biopharma Board of Directors

By Value_Insider Value_Insider 12-19-2022