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Lexicon Pharmaceuticals (Lexicon Pharmaceuticals) ROE %

: -171.12% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lexicon Pharmaceuticals's annualized net income for the quarter that ended in Dec. 2023 was $-199.02 Mil. Lexicon Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $116.31 Mil. Therefore, Lexicon Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 was -171.12%.

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

LXRX' s ROE % Range Over the Past 10 Years
Min: -575.96   Med: -62.16   Max: 286.97
Current: -141.89

During the past 13 years, Lexicon Pharmaceuticals's highest ROE % was 286.97%. The lowest was -575.96%. And the median was -62.16%.

LXRX's ROE % is ranked worse than
82.7% of 1364 companies
in the Biotechnology industry
Industry Median: -44.1 vs LXRX: -141.89

Lexicon Pharmaceuticals ROE % Historical Data

The historical data trend for Lexicon 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.

Lexicon Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 286.97 -42.84 -65.01 -88.37 -168.50

Lexicon Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 -93.42 -124.52 -130.91 -124.04 -171.12

Competitive Comparison

For the Biotechnology subindustry, Lexicon 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.


Lexicon Pharmaceuticals ROE % Distribution

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

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



Lexicon Pharmaceuticals ROE % Calculation

Lexicon Pharmaceuticals'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 )
=-177.119/( (117.124+93.11)/ 2 )
=-177.119/105.117
=-168.50 %

Lexicon Pharmaceuticals'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 )
=-199.024/( (139.51+93.11)/ 2 )
=-199.024/116.31
=-171.12 %

* 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.


Lexicon Pharmaceuticals  (NAS:LXRX) 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
=-199.024/116.31
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-199.024 / 2.808)*(2.808 / 252.954)*(252.954 / 116.31)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7087.75 %*0.0111*2.1748
=ROA %*Equity Multiplier
=-78.67 %*2.1748
=-171.12 %

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
=-199.024/116.31
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-199.024 / -199.024) * (-199.024 / -186.948) * (-186.948 / 2.808) * (2.808 / 252.954) * (252.954 / 116.31)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.0646 * -6657.69 % * 0.0111 * 2.1748
=-171.12 %

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.


Lexicon Pharmaceuticals ROE % Related Terms

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Lexicon Pharmaceuticals (Lexicon Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
2445 Technology Forest Boulevard, 11th Floor, The Woodlands, TX, USA, 77381
Lexicon Pharmaceuticals Inc is a biopharmaceutical company. It is engaged in the discovery, development, and commercialization of pharmaceutical products for the treatment of human diseases. Some of its drugs candidates are LX9211, an orally-delivered small molecule drug candidate, as a treatment for neuropathic pain; and sotagliflozin, an orally-delivered small molecule drug candidate, as a treatment for heart failure and type 1 diabetes.
Executives
Philippe Amouyal director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Lonnel Coats director, officer: President and CEO 8800 TECHNOLOGY FOREST PLACE, THE WOODLANDS TX 77381
Raymond Debbane director, 10 percent owner C/O THE INVUS GROUP, LLC, 750 LEXINGTON AVENUE, NEW YORK NY 10022
Thomas Garner officer: SVP, Chief Commercial Officer 2445 TECHNOLOGY FOREST BLVD, 11TH FLOOR, SPRING TX 77381
Jeffrey L Wade officer: EVP, Gen. Counsel 8800 TECHNOLOGY FOREST PLACE, THE WOODLANDS TX 77381
Wendy Mcdermott officer: VP, Human Resources 2445 TECHNOLOGY FOREST BLVD., 11TH FLOOR, THE WOODLANDS TX 77381
Diane E. Sullivan director C/O AMARIN CORPORATION PLC, 77 SIR JOHN ROGERSON'S QUAY, BLOCK C, DUBLIN 2 L2 D02 VK60
Artal International S.c.a. director, 10 percent owner VALLEY PARK, 44, RUE DE LA VALLEE, LUXEMBOURG N4 L-2661
Invus Partners, Llc director, 10 percent owner 750 LEXINGTON AVE, 30TH FL, NEW YORK NY 10022
Ulys, Llc director, 10 percent owner C/O THE INVUS GROUP, LLC, 750 LEXINGTON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Kiernan Seth officer: VP, Chief Commercial Officer 2445 TECHNOLOGY FOREST BLVD., 11TH FLOOR, THE WOODLANDS TX 77381
Kenneth B. Kassler-taub officer: SVP, Regulatory & QA 2445 TECHNOLOGY FOREST BLVD., 11TH FLOOR, THE WOODLANDS TX 77381
Kristen Alexander officer: VP, Finance and Accounting 2445 TECHNOLOGY FOREST BLVD., 11TH FLOOR, THE WOODLANDS TX 77381
Craig B Granowitz officer: SVP, Chief Medical Officer 58 CHESTNUT STREET, UNIT #3, MORRISTOWN NJ 07960
James F Tessmer officer: VP, Finance & Acctg 8800 TECHNOLOGY FOREST PLACE, THE WOODLANDS TX 77381

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