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NovoCure (NAS:NVCR) ROA %

: -17.94% (As of Mar. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NovoCure's annualized Net Income for the quarter that ended in Mar. 2023 was $-212.2 Mil. NovoCure's average Total Assets over the quarter that ended in Mar. 2023 was $1,183.0 Mil. Therefore, NovoCure's annualized ROA % for the quarter that ended in Mar. 2023 was -17.94%.

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

NVCR' s ROA % Range Over the Past 10 Years
Min: -52.6   Med: -21.77   Max: 2.59
Current: -12.04

During the past 10 years, NovoCure's highest ROA % was 2.59%. The lowest was -52.60%. And the median was -21.77%.

NVCR's ROA % is ranked worse than
59.61% of 864 companies
in the Medical Devices & Instruments industry
Industry Median: -2.22 vs NVCR: -12.04

NovoCure ROA % Historical Data

The historical data trend for NovoCure'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.

NovoCure Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -21.01 -1.77 2.59 -5.33 -7.94

NovoCure Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 Premium Member Only Premium Member Only -1.62 -8.30 -9.10 -12.61 -17.94

Competitive Comparison

For the Medical Devices subindustry, NovoCure'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.

   

NovoCure ROA % Distribution

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's ROA % distribution charts can be found below:

* The bar in red indicates where NovoCure's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



NovoCure ROA % Calculation

NovoCure's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %=Net Income (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=-92.534/( (1139.495+1191.648)/ 2 )
=-92.534/1165.5715
=-7.94 %

NovoCure's annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %=Net Income (Q: Mar. 2023 )/( (Total Assets (Q: Dec. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=-212.244/( (1191.648+1174.34)/ 2 )
=-212.244/1182.994
=-17.94 %

* 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 (Mar. 2023) net income data. ROA % is displayed in the 30-year financial page.


NovoCure  (NAS:NVCR) 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: Mar. 2023 )
=Net Income/Total Assets
=-212.244/1182.994
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-212.244 / 488.728)*(488.728 / 1182.994)
=Net Margin %*Asset Turnover
=-43.43 %*0.4131
=-17.94 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) 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.


NovoCure ROA % Related Terms

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


NovoCure (NAS:NVCR) Business Description

NovoCure logo
Traded in Other Exchanges
Address
Grenville Street, No. 4 The Forum, Second Floor, St. Helier, JEY, JE2 4UF
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
Executives
Arye Barak Ben officer: General Counsel TOPAZ BUILDING, 4TH FLOOR, MATAM CENTER, PO BOX 15022, SH'AR HACARMEL, HAIFA L3 31905
William Patrick Burke officer: Chief Human Resources Officer 195 COMMERCE WAY, PORTSMOUTH NH 03801
Timothy J Scannell director 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Ashley Cordova officer: Chief Financial Officer 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Frank X Leonard officer: Chief Development Officer 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Uri Weinberg officer: Chief Science Officer NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Ely Benaim officer: Chief Medical Officer C/O REXAHN PHARMACEUTICALS, INC., 15245 SHADY GROVE ROAD, SUITE 455, ROCKVILLE MD 20850
Jeryl L Hilleman director C/O INTERSECT ENT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025
Pritesh Shah officer: Chief Commercial Officer C/O NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Sherilyn S Mccoy director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
David Hung director C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Martin J. Madden director C/O MICROBOT MEDICAL INC., 175 DERBY STREET 27/1, HINGHAM MA 02043
Steve Futrell 10 percent owner 780 THIRD AVENUE, 46TH FLOOR, NEW YORK NY 10017
Frances Janis 10 percent owner 780 THIRD AVENUE, 46TH FLOOR, NEW YORK NY 10017
Michael D Granoff 10 percent owner 780 THIRD AVENUE, 46TH FLOOR, NEW YORK NY 10017

NovoCure (NAS:NVCR) Headlines

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