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Mersana Therapeutics's Operating Income for the three months ended in Dec. 2023 was $-20.93 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-170.96 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Mersana Therapeutics's Operating Income for the three months ended in Dec. 2023 was $-20.93 Mil. Mersana Therapeutics's Revenue for the three months ended in Dec. 2023 was $10.70 Mil. Therefore, Mersana Therapeutics's Operating Margin % for the quarter that ended in Dec. 2023 was -195.57%.
Warning Sign:
Mersana Therapeutics Inc operating margin has been in a 5-year decline. The average rate of decline per year is -30.3%.
Mersana Therapeutics's 5-Year average Growth Rate for Operating Margin % was -30.30% per year.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Mersana Therapeutics's annualized ROC % for the quarter that ended in Dec. 2023 was -196.38%. Mersana Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -611.11%.
The historical data trend for Mersana Therapeutics's Operating Income 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.
Mersana Therapeutics Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
Operating Income | Get a 7-Day Free Trial | -30.20 | -88.11 | -168.86 | -203.77 | -170.96 |
Mersana Therapeutics Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Operating Income | Get a 7-Day Free Trial | -45.83 | -57.80 | -56.50 | -35.73 | -20.93 |
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-170.96 Mil.
* 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.
Mersana Therapeutics (NAS:MRSN) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Mersana Therapeutics's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:
ROC % (Q: Dec. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2023 ) | + | Invested Capital (Q: Dec. 2023 )) | / count ) |
= | -83.712 * ( 1 - 0% ) | / | ( (38.832 | + | 46.423) | / 2 ) |
= | -83.712 | / | 42.6275 | |||
= | -196.38 % |
where
Invested Capital | (Q: Sep. 2023 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 262.904 | - | 42.267 | - | ( 240.986 | - | max(0, 67.933 | - | 249.738 | + | 240.986 | )) |
= | 38.832 |
Invested Capital | (Q: Dec. 2023 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 226.06 | - | 29.217 | - | ( 209.084 | - | max(0, 63.637 | - | 214.057 | + | 209.084 | )) |
= | 46.423 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.
2. Joel Greenblatt's definition of Return on Capital:
Mersana Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:
ROC (Joel Greenblatt) % | (Q: Dec. 2023 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Sep. 2023 | Q: Dec. 2023 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | -73.984 | / | ( ( (12.688 + max(-56.044, 0)) | + | (11.525 + max(-53.329, 0)) ) | / | 2 ) |
= | -73.984 | / | ( ( 12.688 | + | 11.525 ) | / | 2 ) |
= | -73.984 | / | 12.1065 | ||||
= | -611.11 % |
where Working Capital is:
Working Capital | (Q: Sep. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 0 | + | 8.752) | - | (42.267 | + | 21.592 | + | 0.937) |
= | -56.044 |
Working Capital | (Q: Dec. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 0 | + | 4.973) | - | (29.217 | + | 28.147 | + | 0.938) |
= | -53.329 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.
3. Operating Income is also linked to Operating Margin %:
Mersana Therapeutics's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:
Operating Margin % | = | Operating Income (Q: Dec. 2023 ) | / | Revenue (Q: Dec. 2023 ) |
= | -20.928 | / | 10.701 | |
= | -195.57 % |
* 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.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Mersana Therapeutics's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.
Anna Protopapas | director, officer: President and CEO | MILLENNIUM PHARMACEUTICALS, INC., 40 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
Mohan Bala | officer: SVP, Chief Development Officer | C/O MERSANA THERAPEUTICS, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Tushar Misra | officer: Chief Manufacturing Officer | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Brian Deschuytner | officer: Sr. VP, Finance & Product stgy | 840 MEMORIAL DRIVE, CAMBRIDGE MA 01776 |
Ashish Mandelia | officer: VP, Controller | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Timothy B Lowinger | officer: Chief Scientific Officer | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Alejandra Carvajal | officer: Chief Legal Officer | C/O CERULEAN PHARMA INC., 840 MEMORIAL DRIVE, 5TH FLOOR, CAMBRIDGE MA 02139 |
Ecor1 Capital, Llc | 10 percent owner | 357 TEHAMA STREET #3, SAN FRANCISCO CA 94103 |
Arvin Yang | officer: Chief Medical Officer | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Hack Andrew A. F. | director | 300 THIRD STREET, FIRST FLOOR, CAMBRIDGE MA 02142 |
Michael J. Kaufman | officer: Sr VP Chmistry, Man & Control | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Allene M. Diaz | director | C/O ALLENA PHARMACEUTIALS, INC., ONEW NEWTON EXECUTIVE PARK SUITE 202, NEWTON MA 02462 |
Eva M. Jack | officer: CBO, Treasurer & Secretary | 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
Lawrence M Alleva | director | 1000 WINTER STREET, SUITE 3300, WALTHAM MA 02451 |
Scott D Sandell | 10 percent owner |
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