ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Global Blood Therapeutics's annualizedNet Income for the quarter that ended in Jun. 2022 was $-329.9 Mil.
Global Blood Therapeutics's average Total Assets over the quarter that ended in Jun. 2022 was $870.0 Mil. Therefore, Global Blood Therapeutics's annualized ROA % for the quarter that ended in Jun. 2022 was -37.92%.
The historical rank and industry rank for Global Blood Therapeutics's ROA % or its related term are showing as below:
GBT'
s ROA % Range Over the Past 10 Years
Min: -293.52 Med: -41.86 Max: -32.57
Current: -41.32
During the past 9 years, Global Blood Therapeutics's highest ROA % was -32.57%. The lowest was -293.52%. And the median was -41.86%.
GBT's ROA % is not ranked
in the Biotechnology industry.
Industry Median: -34.84
vs GBT: -41.32
* 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.
Competitive Comparison of Global Blood Therapeutics's ROA %
For the Biotechnology subindustry, Global Blood Therapeutics's ROA %, along with its competitors' market caps and ROA % 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.
Global Blood Therapeutics's ROA % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Global Blood Therapeutics's ROA % distribution charts can be found below:
* The bar in red indicates where Global Blood Therapeutics's ROA % falls into.
Global Blood Therapeutics ROA % Calculation
Global Blood Therapeutics's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2022) net income data.
ROA % is displayed in the 30-year financial page.
Global Blood Therapeutics (NAS:GBT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.
* 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
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Global Blood Therapeutics ROA % Related Terms
Thank you for viewing the detailed overview of Global Blood Therapeutics's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Global Blood Therapeutics (Global Blood Therapeutics) Business Description
Global Blood Therapeutics Inc operates in the healthcare sector of the United States. It discovers and develops novel therapeutics to address blood-based disorders. GBT440, its lead drug candidate targets the underlying mechanism of red blood cell (RBC) sickling, which provides the potential to treat sickle cell disease. GBT440. an oral, once-daily therapy arrests abnormal hemoglobin polymerization, the underlying mechanism of RBC sickling. In addition, the company is engaged in other research and development activities targeted at hereditary angioedema and owns exclusively licensed rights to its portfolio of product candidates in the United States, Europe, and other major markets.
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