GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » WuXi PharmaTech (Cayman) Inc (NYSE:WX) » Definitions » ROE %

WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) ROE % : 6.92% (As of Sep. 2015)


View and export this data going back to . Start your Free Trial

What is WuXi PharmaTech (Cayman) ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. WuXi PharmaTech (Cayman)'s annualized net income for the quarter that ended in Sep. 2015 was $60.4 Mil. WuXi PharmaTech (Cayman)'s average Total Stockholders Equity over the quarter that ended in Sep. 2015 was $873.8 Mil. Therefore, WuXi PharmaTech (Cayman)'s annualized ROE % for the quarter that ended in Sep. 2015 was 6.92%.

The historical rank and industry rank for WuXi PharmaTech (Cayman)'s ROE % or its related term are showing as below:

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

WuXi PharmaTech (Cayman) ROE % Historical Data

The historical data trend for WuXi PharmaTech (Cayman)'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.

WuXi PharmaTech (Cayman) ROE % Chart

WuXi PharmaTech (Cayman) Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.99 18.02 15.98 17.45 14.83

WuXi PharmaTech (Cayman) Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 17.90 17.32 9.01 9.17 6.92

Competitive Comparison of WuXi PharmaTech (Cayman)'s ROE %

For the Diagnostics & Research subindustry, WuXi PharmaTech (Cayman)'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.


WuXi PharmaTech (Cayman)'s ROE % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, WuXi PharmaTech (Cayman)'s ROE % distribution charts can be found below:

* The bar in red indicates where WuXi PharmaTech (Cayman)'s ROE % falls into.



WuXi PharmaTech (Cayman) ROE % Calculation

WuXi PharmaTech (Cayman)'s annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=112.158/( (734.749+777.854)/ 2 )
=112.158/756.3015
=14.83 %

WuXi PharmaTech (Cayman)'s annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=60.42/( (844.347+903.158)/ 2 )
=60.42/873.7525
=6.92 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.


WuXi PharmaTech (Cayman)  (NYSE:WX) 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. 2015 )
=Net Income/Total Stockholders Equity
=60.42/873.7525
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(60.42 / 854.568)*(854.568 / 1380.0675)*(1380.0675 / 873.7525)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.07 %*0.6192*1.5795
=ROA %*Equity Multiplier
=4.38 %*1.5795
=6.92 %

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. 2015 )
=Net Income/Total Stockholders Equity
=60.42/873.7525
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (60.42 / 82.08) * (82.08 / 103.284) * (103.284 / 854.568) * (854.568 / 1380.0675) * (1380.0675 / 873.7525)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7361 * 0.7947 * 12.09 % * 0.6192 * 1.5795
=6.92 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


WuXi PharmaTech (Cayman) ROE % Related Terms

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


WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Business Description

Traded in Other Exchanges
N/A
Address
WuXi PharmaTech (Cayman) Inc was incorporated on March 16, 2007 and commenced operations and began offering pharmaceutical and biotechnology R&D outsourcing services in 2001. The Company is a pharmaceutical, biotechnology and medical device R&D services company, with operations in China and the United States. It provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers, which includes pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its customers in shortening the cycle and lowering the cost of pharmaceutical and medical device R&D by providing cost-effective and efficient outsourcing solutions. Its primary China-based facilities include 1,127,000 square feet of facilities in the China (Shanghai) Pilot Free Trade Zone used for synthetic chemistry, biology, medicinal chemistry, DMPK, formulation, analytical development, manufacturing process chemistry, research manufacturing, bioanalytical services, genomics, and biologics drug discovery and development; an R&D center in Tianjin engaged in synthetic chemistry and medicinal chemistry; a facility in Wuhan providing services in synthetic chemistry and medicinal chemistry; a small-scale cGMP clinical manufacturing facility and a large-scale cGMP commercial manufacturing plant in the Jinshan district of Shanghai; a large-scale non-GMP manufacturing plant in Changzhou; a preclinical toxicology facility in Suzhou; a laboratory for manufacturing research reagents in Suzhou; and a biologics manufacturing facility in Wuxi. It also offers services in biologics and medical device testing in three FDA-registered facilities in the United States. The Company has two segments: Laboratory services and Manufacturing services. Laboratory services are provided for pharmaceutical, biotechnology and medical device companies. China-based laboratory services for pharmaceutical and biotechnology companies include services for small molecules, such as synthetic chemistry, biology, medicinal chemistry, DMPK/ADME, formulation, analytical chemistry, toxicology, clinical development, bioanalytical services, genomics, research reagent production, and clinical services, as well as services for discovery and development of biologics. U.S.-based laboratory services include testing services for biologics, medical devices, and combination products. Manufacturing services include the development of manufacturing processes and the production of intermediates and active pharmaceutical ingredients, or APIs, for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologics. The Company offers testing and development services to ensure that a medical device is manufactured, packaged and sterilized in accordance with GMP guidelines. Its in vivo and in vitro toxicology testing includes biocompatibility or safe

WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Headlines

From GuruFocus

Baron Funds Comments on WuXi PharmaTech

By Holly LaFon 02-24-2014