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Frequency Therapeutics (Frequency Therapeutics) ROE % : -87.54% (As of Jun. 2023)


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What is Frequency Therapeutics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Frequency Therapeutics's annualized net income for the quarter that ended in Jun. 2023 was $-43.18 Mil. Frequency Therapeutics's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was $49.33 Mil. Therefore, Frequency Therapeutics's annualized ROE % for the quarter that ended in Jun. 2023 was -87.54%.

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

FREQ' s ROE % Range Over the Past 10 Years
Min: -97.27   Med: -41.94   Max: -14.73
Current: -97.27

During the past 6 years, Frequency Therapeutics's highest ROE % was -14.73%. The lowest was -97.27%. And the median was -41.94%.

FREQ's ROE % is not ranked
in the Biotechnology industry.
Industry Median: -44.015 vs FREQ: -97.27

Frequency Therapeutics ROE % Historical Data

The historical data trend for Frequency 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.

Frequency Therapeutics ROE % Chart

Frequency Therapeutics Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial - -31.49 -14.73 -52.39 -81.57

Frequency Therapeutics Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 -81.66 -87.94 -91.88 -127.69 -87.54

Competitive Comparison of Frequency Therapeutics's ROE %

For the Biotechnology subindustry, Frequency 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.


Frequency Therapeutics's ROE % Distribution in the Biotechnology Industry

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

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



Frequency Therapeutics ROE % Calculation

Frequency Therapeutics's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-81.58/( (130.824+69.195)/ 2 )
=-81.58/100.0095
=-81.57 %

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

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=-43.184/( (53.249+45.408)/ 2 )
=-43.184/49.3285
=-87.54 %

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


Frequency Therapeutics  (NAS:FREQ) 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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=-43.184/49.3285
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-43.184 / 0)*(0 / 90.442)*(90.442 / 49.3285)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.8335
=ROA %*Equity Multiplier
=N/A %*1.8335
=-87.54 %

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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=-43.184/49.3285
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-43.184 / -43.164) * (-43.164 / -47.324) * (-47.324 / 0) * (0 / 90.442) * (90.442 / 49.3285)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0005 * 0.9121 * N/A % * 0 * 1.8335
=-87.54 %

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


Frequency Therapeutics ROE % Related Terms

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


Frequency Therapeutics (Frequency Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
75 Hayden Avenue, Suite 300, Lexington, MA, USA, 02421
Frequency Therapeutics Inc is a clinical-stage biotechnology company focused on harnessing the body's innate biology to repair or reverse damage caused by degenerative diseases. Its Progenitor Cell Activation approach uses combinations of molecules to activate progenitor cells within the body to create functional tissue. Its product candidate FX-322 is being developed for treating sensorineural hearing loss.
Executives
Richard J. Mitrano officer: VP Finance & Operations C/O FREQUENCY THERAPEUTICS, INC., 19 PRESIDENTIAL WAY, 2ND FLOOR, WOBURN MA 01801
David L. Lucchino director, officer: President and CEO C/O FREQUENCY THERAPEUTICS, INC., 19 PRESIDENTIAL WAY, 2ND FLOOR, WOBURN MA 01801
Christopher R. Loose officer: Chief Scientific Officer C/O FREQUENCY THERAPEUTICS, INC., 19 PRESIDENTIAL WAY, 2ND FLOOR, WOBURN MA 01801
Quentin Mccubbin officer: Chief Manufacturing Officer C/O FREQUENCY THERAPEUTICS, INC., 10 PRESIDENTIAL WAY, 2ND FLOOR, WOBURN MA 01801
Wendy S Arnold officer: Chief People Officer 19 PRESIDENTIAL WAY, SUITE 203, WOBURN MA 01801
Carl Lebel officer: Chief Development Officer 23256 MARIPOSA DE ORO, MALIBU CA 90265
Peter P. Pfreundschuh officer: Chief Financial Officer C/O IMMUNOMEDICS, INC., 300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Michael Bookman officer: General Counsel and Secretary C/O FREQUENCY THERAPEUTICS, INC., 10 PRESIDENTIAL WAY, 2ND FLOOR, WOBURN MA 01801
Joel S Marcus director, 10 percent owner C/O ALEXANDRIA REAL ESTATE EQUITIES, INC, 26 NORTH EUCLID AVENUE, PASADENA CA 91101
Cynthia L Feldmann director 17 WINTHROP ROAD, WAYLAND MA 01778
Marc A Cohen director 1000 WILSON BLVD. #1800, ARLINGTON VA 22209
James E Flynn 10 percent owner, other: Possible Member of 10% Group 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Deerfield Partners, L.p. 10 percent owner, other: Possible Member of 10% Group 345 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10010
Robert Langer director 98 MONTVALE RD, NEWTON MA 02459
Alexandria Venture Investments, Llc 10 percent owner 26 NORTH EUCLID AVENUE, PASADENA CA 91101

Frequency Therapeutics (Frequency Therapeutics) Headlines