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Cepheid (Cepheid) ROE % : -11.51% (As of Sep. 2016)


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What is Cepheid ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cepheid's annualized net income for the quarter that ended in Sep. 2016 was $-43.6 Mil. Cepheid's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $379.2 Mil. Therefore, Cepheid's annualized ROE % for the quarter that ended in Sep. 2016 was -11.51%.

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

CPHD's ROE % is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: -6.13
* Ranked among companies with meaningful ROE % only.

Cepheid ROE % Historical Data

The historical data trend for Cepheid'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.

Cepheid ROE % Chart

Cepheid Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.44 -8.73 -6.74 -15.68 -13.40

Cepheid Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -24.71 -10.65 -7.07 -10.84 -11.51

Competitive Comparison of Cepheid's ROE %

For the Diagnostics & Research subindustry, Cepheid'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.


Cepheid's ROE % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Cepheid's ROE % distribution charts can be found below:

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



Cepheid ROE % Calculation

Cepheid's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=-48.53/( (354.215+369.983)/ 2 )
=-48.53/362.099
=-13.40 %

Cepheid's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=-43.628/( (377.697+380.646)/ 2 )
=-43.628/379.1715
=-11.51 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


Cepheid  (NAS:CPHD) 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. 2016 )
=Net Income/Total Stockholders Equity
=-43.628/379.1715
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-43.628 / 633.952)*(633.952 / 844.391)*(844.391 / 379.1715)
=Net Margin %*Asset Turnover*Equity Multiplier
=-6.88 %*0.7508*2.2269
=ROA %*Equity Multiplier
=-5.17 %*2.2269
=-11.51 %

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. 2016 )
=Net Income/Total Stockholders Equity
=-43.628/379.1715
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-43.628 / -38.856) * (-38.856 / -22.876) * (-22.876 / 633.952) * (633.952 / 844.391) * (844.391 / 379.1715)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1228 * 1.6985 * -3.61 % * 0.7508 * 2.2269
=-11.51 %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.


Cepheid ROE % Related Terms

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


Cepheid (Cepheid) Business Description

Traded in Other Exchanges
N/A
Address
Cepheid was incorporated in the State of California on March 4, 1996. The Company is a molecular diagnostics company that develops, manufactures and markets integrated systems for testing in the clinical market, as well as for application in its non-clinical markets. The Company's systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company's product portfolio consists of tests, reagents and systems for the clinical and non-clinical markets. The Company's two systems are the GeneXpert and SmartCycler. The GeneXpert system, offers services in the clinical market, integrates sample preparation in addition to DNA amplification and detection. The GeneXpert system is designed for user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals and doctors' offices. The SmartCycler system integrates DNA amplification and detection to allow rapid analysis of a sample. Company faces competition from a number of companies that offer products to its target markets. Company has patents covering technologies of its own and has licensed technologies from others. In addition to patents, it rely on a combination of trade secrets, copyright and trademark laws, nondisclosure agreements, licenses and other contractual provisions and technical measures to maintain and develop its competitive position with respect to intellectual property. In the Clinical market, its products are regulated as medical device products by the FDA and comparable agencies in other countries. For the Non-Clinical market, all of its products are being produced under ISO 13485 and Quality System Regulations.
Executives
Thomas D Brown director 28161 N. KEITH DRIVE, LAKE FOREST IL 60045
Steele Glenn Jr Md Phd director 250 TECHNOLOGY PARK, LAKE MARY FL 32746-6232
Hollings Renton director
John L Bishop director, officer: Chairman of the Board and CEO
Marc Haugen officer: EVP, Global Ops & Engineering C/O CEPHEID, 904 CARIBBEAN DRIVE, SUNNYVALE CA 94089
Ilan Daskal officer: EVP, Chief Financial Officer 1000 ALFRED NOBEL DRIVE, HERCULES CA 94547
Andrew Miller officer: EVP, CFO 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Jim Post officer: EVP, NA Commercial Operations 51 SAWYER ROAD, SUITE 200, WALTHAM MA 02453

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