Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. BB Biotech AG's annualized net income for the quarter that ended in Dec. 2023 was CHF436.46 Mil. BB Biotech AG's average shareholder tangible equity for the quarter that ended in Dec. 2023 was CHF2,268.66 Mil. Therefore, BB Biotech AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 19.24%.
The historical rank and industry rank for BB Biotech AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:BION'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.98 Med: 4.62 Max: 52.4
Current: -8.78
During the past 13 years, BB Biotech AG's highest Return-on-Tangible-Equity was 52.40%. The lowest was -22.98%. And the median was 4.62%.
XSWX:BION's Return-on-Tangible-Equity is ranked better than 75.46% of 1308
companies
in the Biotechnology industry
Industry Median: -48.465
vs XSWX:BION: -8.78
BB Biotech AG Return-on-Tangible-Equity Historical Data
The historical data trend for BB Biotech AG's Return-on-Tangible-Equity 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 BB Biotech AG's Return-on-Tangible-Equity
For the Biotechnology subindustry, BB Biotech AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
BB Biotech AG's Return-on-Tangible-Equity Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, BB Biotech AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BB Biotech AG's Return-on-Tangible-Equity falls into.
BB Biotech AG Return-on-Tangible-Equity Calculation
BB Biotech AG's annualized Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
BB Biotech AG (XSWX:BION) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
BB Biotech AG Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of BB Biotech AG's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
BB Biotech AG is a part of the healthcare sector in Switzerland. Its primary activity includes making investments, especially in the biotechnology market and is one of the largest investors in the field of biotechnology. The focus of the investments is on those listed companies that focus on the development and marketing of novel drugs with a clear value for the healthcare system. BB Biotech follows a strategy of carefully screening and selecting biotechnology firms with a long-term time horizon and having established products in the marketplace. Geographically it earns key revenue from the Netherlands.
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