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Guardant Health ROA %

: -19.04% (As of Sep. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Guardant Health's annualized Net Income for the quarter that ended in Sep. 2021 was $-430.1 Mil. Guardant Health's average Total Assets over the quarter that ended in Sep. 2021 was $2,258.7 Mil. Therefore, Guardant Health's annualized ROA % for the quarter that ended in Sep. 2021 was -19.04%.

The historical rank and industry rank for Guardant Health's ROA % or its related term are showing as below:

NAS:GH' s ROA % Range Over the Past 10 Years
Min: -39.58   Med: -18.29   Max: -9.76
Current: -19.64

-39.58
-9.76

During the past 5 years, Guardant Health's highest ROA % was -9.76%. The lowest was -39.58%. And the median was -18.29%.

NAS:GH's ROA % is ranked lower than
70% of the 243 Companies
in the Medical Diagnostics & Research industry.

( Industry Median: 1.07 vs. NAS:GH: -19.64 )

Guardant Health ROA % Historical Data

The historical data trend for Guardant Health's ROA % 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.

Guardant Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
ROA %
-39.58 -36.22 -18.29 -9.76 -15.69

Guardant Health Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROA % 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 -24.47 -21.22 -18.99 -16.83 -19.04

Competitive Comparison

For the Diagnostics & Research subindustry, Guardant Health'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.

   

Guardant Health ROA % Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Guardant Health's ROA % distribution charts can be found below:

* The bar in red indicates where Guardant Health's ROA % falls into.



Guardant Health ROA % Calculation

Guardant Health's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %=Net Income (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=-253.783/( (962.535+2271.781)/ 2 )
=-253.783/1617.158
=-15.69 %

Guardant Health's annualized ROA % for the quarter that ended in Sep. 2021 is calculated as:

ROA %=Net Income (Q: Sep. 2021 )/( (Total Assets (Q: Jun. 2021 )+Total Assets (Q: Sep. 2021 ))/ count )
=-430.104/( (2291.885+2225.534)/ 2 )
=-430.104/2258.7095
=-19.04 %

* 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 (Sep. 2021) net income data. ROA % is displayed in the 30-year financial page.


Guardant Health  (NAS:GH) 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 bank’s 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:

ROA %(Q: Sep. 2021 )
=Net Income/Total Assets
=-430.104/2258.7095
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-430.104 / 379.116)*(379.116 / 2258.7095)
=Net Margin %*Asset Turnover
=-113.45 %*0.1678
=-19.04 %

Note: The Net Income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.


Guardant Health ROA % Related Terms

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


Guardant Health Business Description

Guardant Health logo
Industry
Traded in Other Exchanges
Address
505 Penobscot Drive, Redwood City, CA, USA, 94063
Guardant Health, based in Redwood City, California, provides cancer blood tests and analytics for clinical and research use, and the firm maintains research partnerships with large biopharmaceutical companies. The company offers Guardant 360, a blood-based (liquid biopsy) test for treatment selection in advanced stage cancer, and Guardant Omni, a broader gene panel for immuno-oncology research. The company's pipeline includes Guardant Reveal (formerly Lunar-1), for cancer recurrence detection in survivors, and Lunar-2, a liquid biopsy for early detection of cancer in higher-risk individuals, with an initial focus on colorectal cancer. Additionally, Guardant offers research development services. The United States accounts for 90% of total revenue, and other markets the remaining 10%.
Executives
Talasaz Amirali director, officer: Chairman, President and COO 18 ISABELLA AVENUE ATHERTON CA 94027
Kaul Samir director C/O KHOSLA VENTURES 3000 SAND HILL ROAD, BLDG. 3, SUITE 170 MENLO PARK CA 94025
Meresman Stanley J director 2071 HUNTINGTON LANE LOS ALTOS CA 94024
Svf Bluebird (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Svf Enterprise (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Sb Investment Advisers (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K 3JP
Softbank Vision Fund (aiv M1) L.p. 10 percent owner 251 LITTLE FALLS DRIVE WILMINGTON DE 19808
Svf Endurance (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Clark Ian T director SOLAZYME, INC. 225 GATEWAY BLVD. SOUTH SAN FRANCISCO CA 94080
Eltoukhy Helmy director, officer: Chief Executive Officer 2 BARRY LANE ATHERTON CA 94027
Bertocci Derek A officer: Chief Financial Officer 3070 ORCHARD DRIVE SAN JOSE CA 95134
Saia John G. officer: See Remarks C/O ACELRX PHARMACEUTICALS, INC. 351 GALVESTON DRIVE REDWOOD CITY CA 94063
Gadde Vijaya director C/O TWITTER INC 1355 MARKET STREET SUITE 900 SAN FRANCISCO CA 94103
Jallal Bahija director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Nishar Dipchand director C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043

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