Kezar Life Sciences (Kezar Life Sciences) Operating Income : $-105.24 Mil (TTM As of Dec. 2023)

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What is Kezar Life Sciences Operating Income?

Kezar Life Sciences's Operating Income for the three months ended in Dec. 2023 was $-28.40 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-105.24 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kezar Life Sciences's Operating Income for the three months ended in Dec. 2023 was $-28.40 Mil. Kezar Life Sciences's Revenue for the three months ended in Dec. 2023 was $0.00 Mil. Therefore, Kezar Life Sciences's Operating Margin % for the quarter that ended in Dec. 2023 was %.

Kezar Life Sciences's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kezar Life Sciences's annualized ROC % for the quarter that ended in Dec. 2023 was -498.08%. Kezar Life Sciences's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -1,204.29%.

Kezar Life Sciences Operating Income Historical Data

The historical data trend for Kezar Life Sciences's Operating Income 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.

Kezar Life Sciences Operating Income Chart

Kezar Life Sciences Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-37.34

-42.95

-54.66

-71.16

-105.24

Kezar Life Sciences Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															-20.03	-24.52	-26.78	-25.53	-28.40

Kezar Life Sciences Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-105.24 Mil.

Kezar Life Sciences (NAS:KZR) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kezar Life Sciences's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-113.608 * ( 1 - 0% )	/	( (24.613	+	21.005)	/ 2 )
=	-113.608	/	22.809
=	-498.08 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	249.326	-	10.869	-	( 218.205	-	max(0, 16.672	-	230.516	+	218.205	))
=	24.613

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	221.235	-	11.024	-	( 201.372	-	max(0, 17.744	-	206.95	+	201.372	))
=	21.005

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Kezar Life Sciences's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-127.444	/	( ( (12.475 + max(-1.466, 0))	+	(8.69 + max(-9.154, 0)) )	/	2 )
=	-127.444	/	( ( 12.475	+	8.69 )	/	2 )
=	-127.444	/	10.5825
=	-1,204.29 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(7	+	0	+	5.311)	-	(10.869	+	0	+	2.908)
=	-1.466

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	5.578)	-	(11.024	+	0	+	3.708)
=	-9.154

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kezar Life Sciences's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-28.402	/	0
	=	%

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Kezar Life Sciences Operating Income Related Terms

Thank you for viewing the detailed overview of Kezar Life Sciences's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Kezar Life Sciences (Kezar Life Sciences) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Kezar Life Sciences Inc (NAS:KZR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

2KZ:Germany 2KZ:Germany

Address

4000 Shoreline Court, Suite 300, South San Francisco, CA, USA, 94080

Website

https://www.kezarlifesciences.com

Kezar Life Sciences Inc is a clinical-stage biotechnology company. It is engaged in discovering and developing novel small molecule therapeutics to treat unmet needs in autoimmunity and cancer. The pipeline consist of product candidates such as KZR-616, and the protein secretion program.

Executives

Morningside Venture Investments Ltd	10 percent owner	MCCARTHY LEGAL SERVICES, 1188 CENTRE STREET, NEWTON CENTRE MA 02459
Nicholas Michael Mordwinkin	officer: Chief Business Officer	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Franklin M Berger	director	1000 MARINA BLVD, STE 200, BRISBANE CA 94005
Wallace Courtney	director	C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Micki Klearman	director	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Equal Talent Investments Ltd	10 percent owner	THC MANAGEMENT SERVICES S.A.M. 2ND FLOOR, LE PRINCE DE GALLES 3-5 AVE DE CITRONNIE, MONTE CARLO O9 98000
Noreen Henig	officer: Chief Medical Officer	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
John Franklin Fowler	director, officer: CEO	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Christopher J. Kirk	director, officer: President and CSO	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Marc Belsky	officer: Chief Financial Officer	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Vassiliki Economides	officer: SVP, Strategy & External Aff.	C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Elizabeth Garner	director	101 POOR FARM ROAD 3RD FLOOR, PRINCETON NJ 08540
Cormorant Asset Management, Lp	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Cormorant Global Healthcare Gp, Llc	10 percent owner	100 HIGH STREET, SUITE 1105, BOSTON DC 02110
Bay City Capital Llc	10 percent owner	750 BATTERY STREET STE 400, SAN FRANCISCO CA 94111