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Fate Therapeutics (Fate Therapeutics) ROE % : -45.77% (As of Dec. 2023)


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What is Fate Therapeutics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Fate Therapeutics's annualized net income for the quarter that ended in Dec. 2023 was $-176.49 Mil. Fate Therapeutics's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $385.60 Mil. Therefore, Fate Therapeutics's annualized ROE % for the quarter that ended in Dec. 2023 was -45.77%.

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

FATE' s ROE % Range Over the Past 10 Years
Min: -90.37   Med: -55.58   Max: -37.07
Current: -37.07

During the past 13 years, Fate Therapeutics's highest ROE % was -37.07%. The lowest was -90.37%. And the median was -55.58%.

FATE's ROE % is ranked better than
53.68% of 1360 companies
in the Biotechnology industry
Industry Median: -44.015 vs FATE: -37.07

Fate Therapeutics ROE % Historical Data

The historical data trend for Fate Therapeutics'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.

Fate Therapeutics ROE % Chart

Fate Therapeutics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -48.44 -55.11 -39.90 -48.46 -37.76

Fate Therapeutics Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -45.00 -15.71 -46.11 -42.99 -45.77

Competitive Comparison of Fate Therapeutics's ROE %

For the Biotechnology subindustry, Fate Therapeutics'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.


Fate Therapeutics's ROE % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Fate Therapeutics's ROE % falls into.



Fate Therapeutics ROE % Calculation

Fate Therapeutics's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-160.928/( (483.939+368.417)/ 2 )
=-160.928/426.178
=-37.76 %

Fate Therapeutics's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-176.488/( (402.777+368.417)/ 2 )
=-176.488/385.597
=-45.77 %

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


Fate Therapeutics  (NAS:FATE) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-176.488/385.597
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-176.488 / 6.704)*(6.704 / 525.0025)*(525.0025 / 385.597)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2632.58 %*0.0128*1.3615
=ROA %*Equity Multiplier
=-33.7 %*1.3615
=-45.77 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-176.488/385.597
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-176.488 / -176.488) * (-176.488 / -192.3) * (-192.3 / 6.704) * (6.704 / 525.0025) * (525.0025 / 385.597)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.9178 * -2868.44 % * 0.0128 * 1.3615
=-45.77 %

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


Fate Therapeutics ROE % Related Terms

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


Fate Therapeutics (Fate Therapeutics) Business Description

Traded in Other Exchanges
Address
12278 Scripps Summit Drive, San Diego, CA, USA, 92131
Fate Therapeutics Inc is a clinical-stage biopharmaceutical company based in the United States. It is engaged in the development of programmed cellular immunotherapies for cancer and immune disorders. The company's cell therapy pipeline is comprised of NK- and T-cell immuno-oncology programs, including off-the-shelf engineered product candidates derived from clonal master iPSC lines, and immuno-regulatory programs, including product candidates to prevent life-threatening complications in patients.
Executives
J Scott Wolchko director, officer: President and CEO C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT, SUITE 200, SAN DIEGO CA 92121
Dulac Edward J Iii officer: Chief Financial Officer FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
Bahram Valamehr officer: Chief Development Officer C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT, STE 200, SAN DIEGO CA 92121
Cindy Tahl officer: See Remarks C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT, STE 200, SAN DIEGO CA 92121
Redmile Group, Llc director, 10 percent owner ONE LETTERMAN DRIVE, BUILDING D, SUITE D3-300, SAN FRANCISCO CA 94129
Yuan Xu director C/O AKERO THERAPEUTICS, INC., 601 GATEWAY BOULEVARD, SUITE 350, SOUTH SAN FRANCISCO CA 94080
Brian T. Powl officer: Chief Commercial Officer C/O FATE THERAPEUTICS, INC., 12278 SCRIPPS SUMMIT DRIVE, SAN DIEGO CA 92131
Yu-waye Chu officer: See Remarks FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
John Mendlein director
Mark Plavsic officer: Chief Technical Officer C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
Shefali Agarwal director C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Karin Jooss director C/O GRITSTONE ONCOLOGY, INC., 5858 HORTON STREET, SUITE 210, EMERYVILLE CA 94608
Timothy P Coughlin director 339 NORTH GRANADOS AVE, SOLANA BEACH CA 92075
Robert Hershberg director 3005 FIRST AVENUE, SEATTLE WA 98121
Robert S Epstein director

Fate Therapeutics (Fate Therapeutics) Headlines

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