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Hyperion Therapeutics (FRA:0HY) ROE % : 22.58% (As of Mar. 2015)


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What is Hyperion Therapeutics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hyperion Therapeutics's annualized net income for the quarter that ended in Mar. 2015 was €26.7 Mil. Hyperion Therapeutics's average Total Stockholders Equity over the quarter that ended in Mar. 2015 was €118.1 Mil. Therefore, Hyperion Therapeutics's annualized ROE % for the quarter that ended in Mar. 2015 was 22.58%.

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

FRA:0HY's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -43.73
* Ranked among companies with meaningful ROE % only.

Hyperion Therapeutics ROE % Historical Data

The historical data trend for Hyperion 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.

Hyperion Therapeutics ROE % Chart

Hyperion Therapeutics Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
- - - 21.37 -5.23

Hyperion Therapeutics Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 4.12 51.43 -98.97 22.87 22.58

Competitive Comparison of Hyperion Therapeutics's ROE %

For the Biotechnology subindustry, Hyperion 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.


Hyperion Therapeutics's ROE % Distribution in the Biotechnology Industry

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

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



Hyperion Therapeutics ROE % Calculation

Hyperion Therapeutics's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=-5.073/( (87.371+106.689)/ 2 )
=-5.073/97.03
=-5.23 %

Hyperion Therapeutics's annualized ROE % for the quarter that ended in Mar. 2015 is calculated as

ROE %=Net Income (Q: Mar. 2015 )/( (Total Stockholders Equity (Q: Dec. 2014 )+Total Stockholders Equity (Q: Mar. 2015 ))/ count )
=26.672/( (106.689+129.526)/ 2 )
=26.672/118.1075
=22.58 %

* 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 (Mar. 2015) net income data. ROE % is displayed in the 30-year financial page.


Hyperion Therapeutics  (FRA:0HY) 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: Mar. 2015 )
=Net Income/Total Stockholders Equity
=26.672/118.1075
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(26.672 / 115.288)*(115.288 / 163.2625)*(163.2625 / 118.1075)
=Net Margin %*Asset Turnover*Equity Multiplier
=23.14 %*0.7062*1.3823
=ROA %*Equity Multiplier
=16.34 %*1.3823
=22.58 %

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: Mar. 2015 )
=Net Income/Total Stockholders Equity
=26.672/118.1075
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (26.672 / 32.416) * (32.416 / 17.34) * (17.34 / 115.288) * (115.288 / 163.2625) * (163.2625 / 118.1075)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8228 * 1.8694 * 15.04 % * 0.7062 * 1.3823
=22.58 %

Note: The net income data used here is four times the quarterly (Mar. 2015) net income data. The Revenue data used here is four times the quarterly (Mar. 2015) 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.


Hyperion Therapeutics ROE % Related Terms

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Hyperion Therapeutics (FRA:0HY) Business Description

Traded in Other Exchanges
N/A
Address
Hyperion Therapeutics Inc., was incorporated in Delaware on November 1, 2006. The Company completed its initial public offering on July 2012. It is a commercial biopharmaceutical company, engaged in the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Its products, RAVICTI (glycerol phenylbutyrate) Oral liquid, BUPHENYL and AMMONAPS (sodium phenylbutyrate) Tablets and Powder, are designed to lower ammonia in the blood. The Company has developed RAVICTI to treat urea cycle disorders including 7 of the 8 prevalent UCD subtypes, and is developing glycerol phenylbutyrate, the active pharmaceutical ingredient in RAVICTI, to treat hepatic encephalopathy. RAVICTI is indicated for use as a nitrogen-binding agent for chronic management of adult and pediatric patients above 2 years of age with urea cycle disorders who cannot be managed by dietary protein restriction and/or amino acid supplementation alone. It distributes RAVICTI through two specialty pharmacies with a single dedicated call center responsible for interfacing with patients, physicians and payors. BUPHENYL is indicated in all patients with neonatal-onset deficiency (complete enzymatic deficiency, presenting within the first 28 days of life). It is also indicated in patients with late-onset disease (partial enzymatic deficiency, presenting after the first month of life) who have a history of hyperammonemic encephalopathy. The Company faces competition from established pharmaceutical and biotechnology companies, as well as from academic institutions, government agencies and private and public research institutions, among others, which may in the future develop products to treat UCD or HE. The Company is subject to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental protection, fire hazard control, and disposal of hazardous or potentially hazardous substances.

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