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Verona Pharma (Verona Pharma) ROE %

: -22.05% (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. Verona Pharma's annualized net income for the quarter that ended in Dec. 2023 was $-56.53 Mil. Verona Pharma's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $256.41 Mil. Therefore, Verona Pharma's annualized ROE % for the quarter that ended in Dec. 2023 was -22.05%.

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

VRNA' s ROE % Range Over the Past 10 Years
Min: -80.27   Med: -36.56   Max: -21.02
Current: -21.02

During the past 13 years, Verona Pharma's highest ROE % was -21.02%. The lowest was -80.27%. And the median was -36.56%.

VRNA's ROE % is ranked better than
66.45% of 1365 companies
in the Biotechnology industry
Industry Median: -44.11 vs VRNA: -21.02

Verona Pharma ROE % Historical Data

The historical data trend for Verona Pharma'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.

Verona Pharma 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 -65.84 -57.25 -33.39 -36.30 -22.67

Verona Pharma 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 -17.87 -26.41 -12.81 -21.90 -22.05

Competitive Comparison

For the Biotechnology subindustry, Verona Pharma'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.


Verona Pharma ROE % Distribution

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

* The bar in red indicates where Verona Pharma's ROE % falls into.



Verona Pharma ROE % Calculation

Verona Pharma'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 )
=-54.369/( (230.466+249.283)/ 2 )
=-54.369/239.8745
=-22.67 %

Verona Pharma'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 )
=-56.528/( (263.533+249.283)/ 2 )
=-56.528/256.408
=-22.05 %

* 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.


Verona Pharma  (NAS:VRNA) 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
=-56.528/256.408
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-56.528 / 0)*(0 / 300.297)*(300.297 / 256.408)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*1.1712
=ROA %*Equity Multiplier
=N/A %*1.1712
=-22.05 %

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
=-56.528/256.408
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-56.528 / -56.74) * (-56.74 / -72.24) * (-72.24 / 0) * (0 / 300.297) * (300.297 / 256.408)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9963 * 0.7854 * N/A % * 0 * 1.1712
=-22.05 %

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.


Verona Pharma ROE % Related Terms

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


Verona Pharma (Verona Pharma) Business Description

Traded in Other Exchanges
Address
3 More London Riverside, London, GBR, SE1 2RE
Verona Pharma PLC is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapeutics for the treatment of respiratory diseases with significant unmet medical needs. The company is currently focusing on developing its Ensifentrine product candidate, which will treat chronic obstructive pulmonary disease (COPD), cystic fibrosis (CF), and other respiratory diseases, including asthma. The company is engaged in pharmaceutical development.
Executives
Martin Edwards director 15 NEW ENGLAND EXECUTIVE PARK, BURLINGTON MA 01803
David R Ebsworth director C/O CURAGEN CORP, 555 LONG WHARF DR. 11TH FL., NEW HAVEN CT 06511
Kathleen A. Rickard officer: Chief Medical Officer C/O VERONA PHARMA PLC, 3 MORE LONDON RIVERSIDE, LONDON X0 SE1 2RE
Christina Ackermann director C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Claire Poll officer: General Counsel C/O VERONA PHARMA PLC, 3 MORE LONDON RIVERSIDE, LONDON X0 SE1 2RE
Mark W Hahn officer: Chief Financial Officer 6340 QUADRANGLE DRIVE, SUITE 100, CHAPEL HILL NC 27517
David Zaccardelli director, officer: President and CEO 300 TRI STATE INTERNATIONAL, SUITE 272, LINCOLNSHIRE IL 60069
Orbimed Advisors Llc director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Rishi Gupta director, 10 percent owner C/O CHEMOCENTRYX, INC., 850 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Access Industries Holdings Llc 10 percent owner C/O ACCESS INDUSTRIES MANAGEMENT, LLC., 730 FIFTH AVENUE, 20TH FLOOR, NEW YORK NY 10019
Ai Biotechnology Llc 10 percent owner C/O ACCESS INDUSTRIES, INC., 40 WEST 57TH STREET, 28TH FLOOR, NEW YORK NY 10019
Access Industries Management, Llc 10 percent owner 730 FIFTH AVENUE, NEW YORK NY 10019
Len Blavatnik 10 percent owner C/O ACCESS INDUSTRIES, 730 FIFTH AVENUE, NEW YORK NY 10019
James Aloysius Brady director C/O VERONA PHARMA PLC, 3 MORE LONDON RIVERSIDE, LONDON X0 SE1 2RE
Lisa Deschamps director C/O VERONA PHARMA PLC, 3 MORE LONDON RIVERSIDE, LONDON X0 SE1 2RE