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Ocera Therapeutics (Ocera Therapeutics) ROE % : -382.46% (As of Sep. 2017)


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What is Ocera Therapeutics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ocera Therapeutics's annualized net income for the quarter that ended in Sep. 2017 was $-25.08 Mil. Ocera Therapeutics's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $6.56 Mil. Therefore, Ocera Therapeutics's annualized ROE % for the quarter that ended in Sep. 2017 was -382.46%.

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

OCRX's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -44.085
* Ranked among companies with meaningful ROE % only.

Ocera Therapeutics ROE % Historical Data

The historical data trend for Ocera Therapeutics'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.

Ocera Therapeutics ROE % Chart

Ocera Therapeutics Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only - - -49.17 -65.05 -114.13

Ocera Therapeutics Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 -139.75 -119.20 -182.71 -215.27 -382.46

Competitive Comparison of Ocera Therapeutics's ROE %

For the Biotechnology subindustry, Ocera Therapeutics'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.


Ocera Therapeutics's ROE % Distribution in the Biotechnology Industry

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

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



Ocera Therapeutics ROE % Calculation

Ocera Therapeutics's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=-26.895/( (31.394+15.737)/ 2 )
=-26.895/23.5655
=-114.13 %

Ocera Therapeutics's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=-25.076/( (9.268+3.845)/ 2 )
=-25.076/6.5565
=-382.46 %

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


Ocera Therapeutics  (NAS:OCRX) 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. 2017 )
=Net Income/Total Stockholders Equity
=-25.076/6.5565
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-25.076 / 0)*(0 / 18.6365)*(18.6365 / 6.5565)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*2.8424
=ROA %*Equity Multiplier
=N/A %*2.8424
=-382.46 %

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. 2017 )
=Net Income/Total Stockholders Equity
=-25.076/6.5565
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-25.076 / -25.076) * (-25.076 / -24.308) * (-24.308 / 0) * (0 / 18.6365) * (18.6365 / 6.5565)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.0316 * N/A % * 0 * 2.8424
=-382.46 %

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


Ocera Therapeutics ROE % Related Terms

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


Ocera Therapeutics (Ocera Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
525 University Avenue, Suite 610, Palo Alto, CA, USA, 94301
Ocera Therapeutics Inc is a clinical-stage biopharmaceutical company, which primarily targets acute and chronic orphan liver diseases. The company is focused on the development and commercialization of a clinical product candidate, OCR-002 for the treatment of acute and chronic hepatic encephalopathy for patients with a serious complication of liver cirrhosis, or liver failure, marked by mental changes including confusion, impaired motor skills, disorientation in time and space, and, in its more severe form, stupor, coma and even death. All the business activity of the firm is functioned through the region of US.
Executives
Brian H Dovey 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Steven P James director C/O OCERA THERAPUETICS, 525 UNIVERSITY AVENUE, SUITE 610, PALO ALTO CA 94301
Wendall Wierenga director 12790 EL CAMINO REAL, C/O NEUROCRINE BIOSCIENCES, SAN DIEGO CA 92130
Nina S Kjellson director C/O INTERWEST PARTNERS, 2710 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Domain Partners Viii, L.p. 10 percent owner C/O DOMAIN ASSOCIATES, L.L.C., ONE PALMER SQUARE, SUITE 515, PRINCETON NJ 08542
Dp Viii Associates, L.p. 10 percent owner C/O DOMAIN ASSOCIATES, L.L.C., ONE PALMER SQUARE, SUITE 515, PRINCETON NJ 08542
Eckard Weber director C/O DOMAIN ASSOCIATES, ONE PALO SQ, PRINCETON NJ 08542
Kim P. Kamdar 10 percent owner C/O DOMAIN ASSOCIATES, L.L.C., ONE PALMER SQUARE, SUITE 515, PRINCETON NJ 08542
Brian K Halak 10 percent owner C/O DOMAIN ASSOCIATES, ONE PALMER SQUARE, PRINCETON NJ 08542
Dp Vi Associates, L.p. 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Associates Domain 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Domain Partners Vi, L.p. 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Nicole Vitullo 10 percent owner 3030 SCIENCE PARK ROAD, SAN DIEGO CA 92121
James C Blair 10 percent owner 5880 PACIFIC CENTER BLVD, SAN DIEGO CA 92121-4204
Jesse I Treu 10 percent owner

Ocera Therapeutics (Ocera Therapeutics) Headlines

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