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Achillion Pharmaceuticals (Achillion Pharmaceuticals) ROE % : -34.90% (As of Sep. 2019)


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What is Achillion Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Achillion Pharmaceuticals's annualized net income for the quarter that ended in Sep. 2019 was $-78.33 Mil. Achillion Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $224.43 Mil. Therefore, Achillion Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2019 was -34.90%.

The historical rank and industry rank for Achillion Pharmaceuticals's ROE % or its related term are showing as below:

ACHN's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -44.085
* Ranked among companies with meaningful ROE % only.

Achillion Pharmaceuticals ROE % Historical Data

The historical data trend for Achillion Pharmaceuticals'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.

Achillion Pharmaceuticals ROE % Chart

Achillion Pharmaceuticals Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -46.56 -1.70 -14.53 -23.55 -23.80

Achillion Pharmaceuticals Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 -22.10 -24.30 -29.45 -32.34 -34.90

Competitive Comparison of Achillion Pharmaceuticals's ROE %

For the Biotechnology subindustry, Achillion Pharmaceuticals'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.


Achillion Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Achillion Pharmaceuticals's ROE % distribution charts can be found below:

* The bar in red indicates where Achillion Pharmaceuticals's ROE % falls into.



Achillion Pharmaceuticals ROE % Calculation

Achillion Pharmaceuticals's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=-70.272/( (324.515+266.012)/ 2 )
=-70.272/295.2635
=-23.80 %

Achillion Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2019 is calculated as

ROE %=Net Income (Q: Sep. 2019 )/( (Total Stockholders Equity (Q: Jun. 2019 )+Total Stockholders Equity (Q: Sep. 2019 ))/ count )
=-78.332/( (231.643+217.216)/ 2 )
=-78.332/224.4295
=-34.90 %

* 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. 2019) net income data. ROE % is displayed in the 30-year financial page.


Achillion Pharmaceuticals  (NAS:ACHN) 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. 2019 )
=Net Income/Total Stockholders Equity
=-78.332/224.4295
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-78.332 / 0)*(0 / 242.3585)*(242.3585 / 224.4295)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.0799
=ROA %*Equity Multiplier
=N/A %*1.0799
=-34.90 %

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. 2019 )
=Net Income/Total Stockholders Equity
=-78.332/224.4295
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-78.332 / -78.332) * (-78.332 / -84.216) * (-84.216 / 0) * (0 / 242.3585) * (242.3585 / 224.4295)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.9301 * N/A % * 0 * 1.0799
=-34.90 %

Note: The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.


Achillion Pharmaceuticals ROE % Related Terms

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


Achillion Pharmaceuticals (Achillion Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
300 George Street, New Haven, CT, USA, 06511
Achillion Pharmaceuticals Inc is a biotechnology company that seeks to discover and commercialize treatments for rare diseases. The company is engaged solely in the discovery and development of innovative small-molecule drug therapies for infectious diseases and immune system disorders. Achillion specializes in structural biology, medicinal chemistry, and antimicrobial discovery research. The company generates revenue from product sales, regulatory and commercialization milestones, and royalties. Achillion also uses collaborative and licensing agreements.
Executives
Joseph Truitt director, officer: Chief Executive Officer C/O ACHILLION PHARMACEUTICALS, INC., 300 GEORGE STREET, NEW HAVEN CT 06511
Kurt Graves director C/O ACHILLION PHARMACEUTICALS INC., 300 GEORGE STREET, NEW HAVEN CT 06511
Michael D Kishbauch director 18 CHERRYVILLE RD, FLEMINGTON NJ 08822
Jason S Fisherman director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Van Nostrand Robert L director C/O ACHILLION PHARMACEUTICALS, INC., 300 GEORGE STREET, NEW HAVEN CT 06511
Nicole Vitullo director 3030 SCIENCE PARK ROAD, SAN DIEGO CA 92121
Martha E Manning officer: General Counsel 700 PENNSYLVANIA DR, EXTON PA 19341
Frank Verwiel director C/O INTERMUNE, INC., 3280 BAYSHORE BLVD., BRISBANE CA 94005
Paul E Firuta officer: EVP, Chief Commercial Officer 550 HILLS DRIVE, THIRD FLOOR, BEDMINSTER NJ 07921
Steven Zelenkofske officer: EVP, Chief Medical Officer 120 MOUNTAIN VIEW BOULEVARD, BASKING RIDGE NJ 07920
Mary Kay Fenton officer: Chief Financial Officer ACHILLION PHARMACEUTICALS, 300 GEORGE STREET, NEW HAVEN CT 06511
Milind Deshpande director, officer: Chief Executive Officer ACHILLION PHARMACEUTICALS, 300 GEORGE STREET, NEW HAVEN CT 06511
Johnson & Johnson Innovation - Jjdc, Inc. 10 percent owner 410 GEORGE STREET, NEW BRUNSWICK NJ 08901
Johnson & Johnson 10 percent owner ONE JOHNSON & JOHNSON PLZ, NEW BRUNSWICK NJ 08933
David Apelian officer: Chief Medical Officer C/O ACHILLION PHARMACEUTICALS, INC, 300 GEORGE STREET, NEW HAVEN CT 06511

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