Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Zai Lab's annualizedNet Income for the quarter that ended in Dec. 2023 was $-381.7 Mil. Zai Lab's average total tangible assets for the quarter that ended in Dec. 2023 was $1,029.5 Mil. Therefore, Zai Lab's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was -37.08%.
The historical rank and industry rank for Zai Lab's Return-on-Tangible-Asset or its related term are showing as below:
ZLAB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -129.31 Med: -48.78 Max: -29.77
Current: -30.23
During the past 9 years, Zai Lab's highest Return-on-Tangible-Asset was -29.77%. The lowest was -129.31%. And the median was -48.78%.
ZLAB's Return-on-Tangible-Asset is ranked better than 58.43% of 1554
companies
in the Biotechnology industry
Industry Median: -40.005
vs ZLAB: -30.23
Zai Lab Return-on-Tangible-Asset Historical Data
The historical data trend for Zai Lab's Return-on-Tangible-Asset 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.
Competitive Comparison of Zai Lab's Return-on-Tangible-Asset
For the Biotechnology subindustry, Zai Lab's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Zai Lab's Return-on-Tangible-Asset Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Zai Lab's Return-on-Tangible-Asset falls into.
Zai Lab Return-on-Tangible-Asset Calculation
Zai Lab's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Zai Lab Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Zai Lab's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. The pipeline of proprietary drug candidates of the company includes ZL-2306 for treatment across multiple solid tumor types including ovarian and certain types of breast and lung cancers; ZL-2401 which is an antibiotic in a new class of tetracycline derivatives; and ZL-2301 is an oral, small molecule which targets HCC.
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