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Intercept Pharmaceuticals (Intercept Pharmaceuticals) ROE % : -16.01% (As of Sep. 2023)


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What is Intercept Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Intercept Pharmaceuticals's annualized net income for the quarter that ended in Sep. 2023 was $-11.2 Mil. Intercept Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $69.7 Mil. Therefore, Intercept Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2023 was -16.01%.

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

ICPT' s ROE % Range Over the Past 10 Years
Min: -1741.42   Med: -136.11   Max: Negative Equity
Current: -75.63

During the past 13 years, Intercept Pharmaceuticals's highest ROE % was Negative Equity%. The lowest was -1,741.42%. And the median was -136.11%.

ICPT's ROE % is not ranked
in the Biotechnology industry.
Industry Median: -43.845 vs ICPT: -75.63

Intercept Pharmaceuticals ROE % Historical Data

The historical data trend for Intercept Pharmaceuticals'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.

Intercept Pharmaceuticals ROE % Chart

Intercept Pharmaceuticals Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,741.42 -975.25 - - Negative Equity

Intercept Pharmaceuticals Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 Negative Equity -82.99 -160.41 -34.81 -16.01

Competitive Comparison of Intercept Pharmaceuticals's ROE %

For the Biotechnology subindustry, Intercept Pharmaceuticals'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.


Intercept Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Intercept Pharmaceuticals's ROE % falls into.



Intercept Pharmaceuticals ROE % Calculation

Intercept Pharmaceuticals's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=221.816/( (-183.962+93.077)/ 2 )
=221.816/-45.4425
=Negative Equity %

Intercept Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=-11.16/( (67.546+71.845)/ 2 )
=-11.16/69.6955
=-16.01 %

* 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 (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Intercept Pharmaceuticals  (NAS:ICPT) 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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-11.16/69.6955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-11.16 / 355.156)*(355.156 / 438.8985)*(438.8985 / 69.6955)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3.14 %*0.8092*6.2974
=ROA %*Equity Multiplier
=-2.54 %*6.2974
=-16.01 %

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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-11.16/69.6955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-11.16 / -11.04) * (-11.04 / 6.564) * (6.564 / 355.156) * (355.156 / 438.8985) * (438.8985 / 69.6955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0109 * -1.6819 * 1.85 % * 0.8092 * 6.2974
=-16.01 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.


Intercept Pharmaceuticals ROE % Related Terms

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


Intercept Pharmaceuticals (Intercept Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
305 Madison Avenue, Morristown, NJ, USA, 07960
Intercept Pharmaceuticals Inc is a biotech company focused on developing and commercializing novel therapeutics to treat progressive non-viral liver diseases. Obeticholic acid, or OCA, is an agonist of the farnesoid X receptor. OCA was approved as Ocaliva to treat primary biliary cirrhosis in 2016 and is being developed for a variety of chronic liver diseases, including nonalcoholic steatohepatitis, or NASH.
Executives
Andrew Saik officer: EVP & Chief Financial Officer 640 LEE ROAD, CHESTERBROOK PA 19087
M Michelle Berrey officer: President, R&D and CMO 303A COLLEGE ROAD EAST, PRINCETON NJ 08450
Dagmar Rosa-bjorkeson director C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Rocco Venezia officer: Chief Accounting Officer C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, 37TH FLOOR, NEW YORK NY 10001
Srinivas Akkaraju director 565 EVERETT AVENUE, PALO ALTO CA 94301
Lisa Defrancesco officer: SVP, IR & Corp. Affairs C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, FLOOR 37, NEW YORK NY 10001
Linda M Richardson officer: EVP & Chief Commercial Officer 2505 MERIDIAN PKWY, SUITE 340, C/O CHIMERIX, INC., DURHAM NC 27713
Jared Freedberg officer: General Counsel and Secretary 300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Bryan Ball officer: Chief Quality Officer 300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Sandip Kapadia officer: CFO and Treasurer 450 WEST 15 STREET, SUITE 505, NEW YORK NY 10011
Jason Campagna officer: Chief Medical Officer C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, FLOOR 37, NEW YORK NY 10001
Paolo Fundaro director, 10 percent owner C/O GENEXTRA S.P.A.,, VIA G. DE GRASSI, 11, MILAN L6 20123
Francesco Micheli 10 percent owner C/O GENEXTRA S.P.A., VIA G. DE GRASSI, 11, MILAN L6 20124
Genextra S.p.a. 10 percent owner VIA G. DE GRASSI, 11, MILAN L6 20123
Keith Michael Gottesdiener director 900 FIFTH AVENUE, #8C, NEW YORK NY 10021

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