Audeo Oncology (Audeo Oncology) ROA % : -234.52% (As of Sep. 2012)

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What is Audeo Oncology ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Audeo Oncology's annualized Net Income for the quarter that ended in Sep. 2012 was $-20.54 Mil. Audeo Oncology's average Total Assets over the quarter that ended in Sep. 2012 was $8.76 Mil. Therefore, Audeo Oncology's annualized ROA % for the quarter that ended in Sep. 2012 was -234.52%.

The historical rank and industry rank for Audeo Oncology's ROA % or its related term are showing as below:

AURX's ROA % is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 1.59
* Ranked among companies with meaningful ROA % only.

Audeo Oncology ROA % Historical Data

The historical data trend for Audeo Oncology's ROA % 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.

Audeo Oncology ROA % Chart

Audeo Oncology Annual Data

Trend

Jun10

Jun11

Jun12

ROA %

-3,443.48

-1,540.99

-187.35

Audeo Oncology Quarterly Data
	Jun11	Mar12	Jun12	Sep12
ROA %	-1,504.39	-	-346.06	-234.52

Competitive Comparison of Audeo Oncology's ROA %

For the Drug Manufacturers - General subindustry, Audeo Oncology's ROA %, along with its competitors' market caps and ROA % 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.

Audeo Oncology's ROA % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Audeo Oncology's ROA % distribution charts can be found below:

* The bar in red indicates where Audeo Oncology's ROA % falls into.

Audeo Oncology ROA % Calculation

Audeo Oncology's annualized ROA % for the fiscal year that ended in Jun. 2012 is calculated as:

ROA %	=	Net Income (A: Jun. 2012 )	/	( (Total Assets (A: Jun. 2011 )	+	Total Assets (A: Jun. 2012 ))	/ count )
	=	-9.952	/	( (0.912	+	9.712)	/ 2 )
	=	-9.952	/	5.312
	=	-187.35 %

Audeo Oncology's annualized ROA % for the quarter that ended in Sep. 2012 is calculated as:

ROA %	=	Net Income (Q: Sep. 2012 )	/	( (Total Assets (Q: Jun. 2012 )	+	Total Assets (Q: Sep. 2012 ))	/ count )
	=	-20.54	/	( (9.712	+	7.805)	/ 2 )
	=	-20.54	/	8.7585
	=	-234.52 %

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2012) net income data. ROA % is displayed in the 30-year financial page.

Audeo Oncology (DELISTED:AURX) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

	ROA %		(Q: Sep. 2012 )
=	Net Income	/	Total Assets
=	-20.54	/	8.7585
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-20.54 / 0.244)	*	(0.244 / 8.7585)
=	Net Margin %	*	Asset Turnover
=	-8418.03 %	*	0.0279
=	-234.52 %

Note: The Net Income data used here is four times the quarterly (Sep. 2012) net income data. The Revenue data used here is four times the quarterly (Sep. 2012) revenue data.

Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.

Audeo Oncology ROA % Related Terms

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Audeo Oncology (Audeo Oncology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Audeo Oncology Inc (DELISTED:AURX) » Definitions » ROA %

Traded in Other Exchanges

N/A

Address

Website

http://www.audeooncology.com

Audeo Oncology, Inc was incorporated in Delaware in June 2012. It is a late stage biopharmaceutical company utilizing its Hyaluronic Acid Chemotransport Technology, or HyACT, to target cancer drugs preferentially to tumor cells to enhance drug activity. HyACT is a flexible platform technology designed to increase the effectiveness of anti-cancer agents without increasing treatment toxicity. It seeks to reduce the risks related to drug development by using known anti-cancer drugs, and aim to enhance their commercial value by improving their effectiveness. The Company's lead HyACT product candidate, HA-Irinotecan, is currently in a pivotal Phase III clinical trial for metastatic colorectal cancer, or mCRC. HA-Irinotecan is also in an investigator-sponsored Phase II clinical trial for small cell lung cancer, or SCLC. It also has two other HyACT product candidates that have successfully completed Phase I clinical trials. In addition to its current clinical-stage product candidates, it aims to develop a pipeline of product candidates by exploiting its significant know-how in cancer stem cell biology and cancer metabolism combined with the Versatile Assembly on Stable Templates, or VAST, molecule drug discovery technology that it will in-license. The Company's lead product candidate is HyACT-targeted irinotecan, or HA-Irinotecan, for the treatment of mCRC. Irinotecan, which is marketed in major markets by Pfizer as Camptosar, is an off-patent chemotherapy drug widely used in the treatment of mCRC. Government authorities in the United States (including federal, state and local authorities) and in other countries extensively regulate the manufacture, research, clinical development, labeling, packaging, distribution, post-approval monitoring and reporting, advertising, promotion, export and import of pharmaceutical products, such as those it is developing.