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Emergent BioSolutions (Emergent BioSolutions) ROE %

: -29.41% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Emergent BioSolutions's annualized net income for the quarter that ended in Dec. 2023 was $-198 Mil. Emergent BioSolutions's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $673 Mil. Therefore, Emergent BioSolutions's annualized ROE % for the quarter that ended in Dec. 2023 was -29.41%.

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

EBS' s ROE % Range Over the Past 10 Years
Min: -77.37   Med: 7.65   Max: 24.12
Current: -77.37

During the past 13 years, Emergent BioSolutions's highest ROE % was 24.12%. The lowest was -77.37%. And the median was 7.65%.

EBS's ROE % is ranked worse than
88.39% of 999 companies
in the Drug Manufacturers industry
Industry Median: 4.42 vs EBS: -77.37

Emergent BioSolutions ROE % Historical Data

The historical data trend for Emergent BioSolutions'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.

Emergent BioSolutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.19 24.12 14.35 -14.11 -74.67

Emergent BioSolutions Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only -18.89 -56.52 -96.83 -127.44 -29.41

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Emergent BioSolutions'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.


Emergent BioSolutions ROE % Distribution

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

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



Emergent BioSolutions ROE % Calculation

Emergent BioSolutions'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 )
=-760.5/( (1387.7+649.3)/ 2 )
=-760.5/1018.5
=-74.67 %

Emergent BioSolutions'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 )
=-198/( (697.2+649.3)/ 2 )
=-198/673.25
=-29.41 %

* 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.


Emergent BioSolutions  (NYSE:EBS) 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
=-198/673.25
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-198 / 1079.6)*(1079.6 / 1858.15)*(1858.15 / 673.25)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.34 %*0.581*2.76
=ROA %*Equity Multiplier
=-10.66 %*2.76
=-29.41 %

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
=-198/673.25
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-198 / -218) * (-218 / -175.2) * (-175.2 / 1079.6) * (1079.6 / 1858.15) * (1858.15 / 673.25)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9083 * 1.2443 * -16.23 % * 0.581 * 2.76
=-29.41 %

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.


Emergent BioSolutions ROE % Related Terms

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Emergent BioSolutions (Emergent BioSolutions) Business Description

Traded in Other Exchanges
Address
400 Professional Drive, Suite 400, Gaithersburg, MD, USA, 20879
Emergent BioSolutions Inc offers public health products to the government and healthcare providers. The company has four main units: vaccines, which produces specialty vaccines for public health threats; devices, such as nasal sprays, skin lotions, and injections; therapeutics, which includes antibody-based treatments; and contract development and manufacturing, which brings treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government. Most revenue comes from U.S. government purchases of vaccines, devices, and therapeutic products. The company operates in two reportable segments; the Products Segment and the Services Segment.
Executives
Neal Franklin Fowler director C/O EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Donald W Degolyer director 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
William Hartzel officer: SVP, Bioservices 400 PROFESSIONAL DRIVE, STE. 400, GAITHERSBURG MD 20879
Miller H Haywood Iii officer: Interim CEO EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Kathryn C Zoon director 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Paul Anthony Williams officer: SVP, Products Business 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Ronald Richard director 2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850
Sujata Tyagi Dayal director C/O BIOMET, INC., P.O. BOX 587, WARSAW IN 46581-0587
Keith Katkin director C/O UROVANT SCIENCES, INC., 5281 CALIFORNIA AVENUE, SUITE 100, IRVINE CA 92617
Glessner Coleen officer: EVP, Quality & Ethics, and CPL 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Jennifer Lynne Fox officer: EVP, Ext Aff, GC, Corp Sec 400 PROFESSIONAL DRIVE, GAITHERSBURG MD 20879
Richard S Lindahl officer: EVP, Chief Financial Officer NEXTEL, 2001 EDMUND HALLEY DR, RESTON VA 20191
Sue Bailey director 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20850
Adam Havey officer: EVP, BioDefense Division 2273 RESEARCH BLVD SUITE 400, ROCKVILLE MD 20853
Robert Kramer officer: Interim, EVP, BioSciences 2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850

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