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Arqule (Arqule) ROE % : -27.30% (As of Sep. 2019)


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What is Arqule ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Arqule's annualized net income for the quarter that ended in Sep. 2019 was $-42.96 Mil. Arqule's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $157.37 Mil. Therefore, Arqule's annualized ROE % for the quarter that ended in Sep. 2019 was -27.30%.

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

ARQL's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -44.015
* Ranked among companies with meaningful ROE % only.

Arqule ROE % Historical Data

The historical data trend for Arqule'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.

Arqule ROE % Chart

Arqule Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -46.24 -39.51 -85.96 -154.26 -33.24

Arqule Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 -39.31 -40.89 -54.74 -31.26 -27.30

Competitive Comparison of Arqule's ROE %

For the Biotechnology subindustry, Arqule'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.


Arqule's ROE % Distribution in the Biotechnology Industry

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

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



Arqule ROE % Calculation

Arqule's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=-15.482/( (14.181+78.968)/ 2 )
=-15.482/46.5745
=-33.24 %

Arqule's annualized ROE % for the quarter that ended in Sep. 2019 is calculated as

ROE %=Net Income (Q: Sep. 2019 )/( (Total Stockholders Equity (Q: Jun. 2019 )+Total Stockholders Equity (Q: Sep. 2019 ))/ count )
=-42.956/( (161.616+153.126)/ 2 )
=-42.956/157.371
=-27.30 %

* 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 (Sep. 2019) net income data. ROE % is displayed in the 30-year financial page.


Arqule  (NAS:ARQL) 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: Sep. 2019 )
=Net Income/Total Stockholders Equity
=-42.956/157.371
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-42.956 / 0.832)*(0.832 / 183.7675)*(183.7675 / 157.371)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5162.98 %*0.0045*1.1677
=ROA %*Equity Multiplier
=-23.23 %*1.1677
=-27.30 %

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: Sep. 2019 )
=Net Income/Total Stockholders Equity
=-42.956/157.371
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-42.956 / -42.956) * (-42.956 / -45.1) * (-45.1 / 0.832) * (0.832 / 183.7675) * (183.7675 / 157.371)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.9525 * -5420.67 % * 0.0045 * 1.1677
=-27.30 %

Note: The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.


Arqule ROE % Related Terms

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


Arqule (Arqule) Business Description

Traded in Other Exchanges
N/A
Address
One Wall Street, Burlington, MA, USA, 01803
Arqule Inc is a biopharmaceutical company, engaged in the research and development of therapeutics to treat cancers and rare diseases. The objective of the company is to discover, develop and commercialize novel small molecule drugs in areas of high unmet need that will dramatically extend and improve the lives of the patients. These drugs focus on the biological pathways implicated in a range of cancers and certain non-oncology indications. Product portfolios of the group include Tivantinib, ARQ 087, ARQ 092, ARQ 761, and ARQ 751. Geographically, the firm operates through the region of United States.
Executives
Patrick J Zenner director C/O DENDRITE INTERNATIONAL INC., 1405/1425 ROUTE 206 SOUTH, BEDMINSTER NJ 07921
Marc Schegerin officer: CFO and Treasurer ARQULE INC, 1 WALL ST FL6, BURLINGTON MA 01803
Brian Schwartz officer: See Remarks C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Ran Nussbaum director C/O KITE PHARMA, INC., 2225 COLORADO AVENUE, SANTA MONICA CA 90404
Timothy C Barabe director C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Susan L. Kelley director C/O DECIPHERA PHARMACEUTICALS, INC., 200 SMITH STREET, WALTHAM MA 02451
Michael D Loberg director C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Paolo Pucci director, officer: Chief Executive Officer C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Merck & Co., Inc. 10 percent owner 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Merck Sharp & Dohme Corp. 10 percent owner ONE MERCK DRIVE, WHITEHOUSE STATION NJ 08889
Robert J Weiskopf officer: Chief Financial Officer C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Mark N Lampert 10 percent owner 1 SANSOME ST, 30TH FL, SAN FRANCISCO CA 94104
Biotechnology Value Fund L P other: See Explanation of Responses 44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104
Bvf Partners L P/il 10 percent owner 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104
Bvf Inc/il 10 percent owner 44 MONTGOMERY STREET, 40TH FL, SAN FRANCISCO CA 94104