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Akcea Therapeutics (Akcea Therapeutics) ROE % : -40.11% (As of Jun. 2020)


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What is Akcea Therapeutics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Akcea Therapeutics's annualized net income for the quarter that ended in Jun. 2020 was $-198.3 Mil. Akcea Therapeutics's average Total Stockholders Equity over the quarter that ended in Jun. 2020 was $494.4 Mil. Therefore, Akcea Therapeutics's annualized ROE % for the quarter that ended in Jun. 2020 was -40.11%.

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

AKCA' s ROE % Range Over the Past 10 Years
Min: -465.28   Med: -111.14   Max: 10.03
Current: -9.32

During the past 6 years, Akcea Therapeutics's highest ROE % was 10.03%. The lowest was -465.28%. And the median was -111.14%.

AKCA's ROE % is not ranked
in the Biotechnology industry.
Industry Median: -44.08 vs AKCA: -9.32

Akcea Therapeutics ROE % Historical Data

The historical data trend for Akcea Therapeutics'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.

Akcea Therapeutics ROE % Chart

Akcea Therapeutics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial -111.14 -443.59 -161.99 -101.60 9.95

Akcea Therapeutics Quarterly Data
Dec14 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
ROE % Get a 7-Day Free Trial 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 -39.42 -36.30 75.91 -32.56 -40.11

Competitive Comparison of Akcea Therapeutics's ROE %

For the Biotechnology subindustry, Akcea Therapeutics'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.


Akcea Therapeutics's ROE % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Akcea Therapeutics's ROE % falls into.



Akcea Therapeutics ROE % Calculation

Akcea Therapeutics's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=40.772/( (276.724+543.004)/ 2 )
=40.772/409.864
=9.95 %

Akcea Therapeutics's annualized ROE % for the quarter that ended in Jun. 2020 is calculated as

ROE %=Net Income (Q: Jun. 2020 )/( (Total Stockholders Equity (Q: Mar. 2020 )+Total Stockholders Equity (Q: Jun. 2020 ))/ count )
=-198.308/( (509.691+479.028)/ 2 )
=-198.308/494.3595
=-40.11 %

* 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 (Jun. 2020) net income data. ROE % is displayed in the 30-year financial page.


Akcea Therapeutics  (NAS:AKCA) 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: Jun. 2020 )
=Net Income/Total Stockholders Equity
=-198.308/494.3595
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-198.308 / 89.508)*(89.508 / 543.929)*(543.929 / 494.3595)
=Net Margin %*Asset Turnover*Equity Multiplier
=-221.55 %*0.1646*1.1003
=ROA %*Equity Multiplier
=-36.47 %*1.1003
=-40.11 %

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: Jun. 2020 )
=Net Income/Total Stockholders Equity
=-198.308/494.3595
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-198.308 / -200.728) * (-200.728 / -204.364) * (-204.364 / 89.508) * (89.508 / 543.929) * (543.929 / 494.3595)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9879 * 0.9822 * -228.32 % * 0.1646 * 1.1003
=-40.11 %

Note: The net income data used here is four times the quarterly (Jun. 2020) net income data. The Revenue data used here is four times the quarterly (Jun. 2020) 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.


Akcea Therapeutics ROE % Related Terms

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


Akcea Therapeutics (Akcea Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
22 Boston Wharf Road, 9th Floor, Boston, MA, USA, 02110
Akcea Therapeutics Inc is a commercial-stage biopharmaceutical company focused on developing and commercializing drugs to treat patients with serious cardiometabolic diseases caused by lipid disorders. It is advancing a mature pipeline of novel drugs with the potential to treat multiple diseases. The company's drugs, volanesorsen, AKCEA-APO(a)-LRx, AKCEA-ANGPTL3-LRx and AKCEA-APOCIII-LRx, are all based on antisense technology developed by Ionis Pharmaceuticals, Inc. Its most advanced drug, volanesorsen, has completed a Phase 3 clinical program for the treatment of familial chylomicronemia syndrome, or FCS, and is currently in Phase 3 clinical development for the treatment of familial partial lipodystrophy, or FPL.
Executives
Michael J. Yang director C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
Joseph Iii Klein director C/O GENAISSANCE PHARMACEUTICALS INC, FIVE SCIENCE PARK, NEW HAVEN CT 06511
Sandford D Smith director C/O ARIAD PHARMACEUTICALS INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
B Lynne Parshall director 2855 GAZELLE COURT, CARLSBAD CA 92010
Joshua F. Patterson officer: General Counsel C/O AKCEA THERAPEUTICS, INC., 22 BOSTON WHARF ROAD, 9TH FLOOR, BOSTON MA 02210
Damien Mcdevitt director, officer: Chief Executive Officer C/O IONIS PHARMACEUTICALS, INC., 2855 GAZELLE COURT, CARLSBAD CA 92010
Alex G. Howarth officer: Chief Operating Officer C/O AKCEA THERAPEUTICS, INC., 22 BOSTON WHARF ROAD, 9TH FLOOR, BOSTON MA 02210
Kyle Jenne officer: Chief Commercial Officer C/O AKCEA THERAPEUTICS, INC. 22 BOSTON WHARF ROAD, 9TH FLOOR BOSTON MA 02210
William T. Andrews officer: Chief Medical Officer ONE MAIN STREET, SUITE 800, CAMBRIDGE MA 02142
Barbara Yanni director 1018 W. 8TH AVENUE, SUITE A, KING OF PRUSSIA PA 19406
Michael Dennis Price officer: Chief Financial Officer
Elaine Hochberg director C/O AKCEA THERAPAEUTICS 55 CAMBRIDGE PKWY, STE 100 CAMBRIDGE MA 02142
Isis Pharmaceuticals Inc 10 percent owner 2855 GAZELLE COURT, CARLSBAD CA 92010
Michael F Maclean officer: Chief Financial Officer 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Paula Soteropoulos director, officer: Chief Executive Officer 49 WINONA STREET, PEABODY MA 01960

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