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Loxo Oncology (Loxo Oncology) ROE % : -28.07% (As of Sep. 2018)


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What is Loxo Oncology ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Loxo Oncology's annualized net income for the quarter that ended in Sep. 2018 was $-108.3 Mil. Loxo Oncology's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $385.7 Mil. Therefore, Loxo Oncology's annualized ROE % for the quarter that ended in Sep. 2018 was -28.07%.

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

LOXO's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -43.445
* Ranked among companies with meaningful ROE % only.

Loxo Oncology ROE % Historical Data

The historical data trend for Loxo Oncology'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.

Loxo Oncology ROE % Chart

Loxo Oncology Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
- -40.36 -26.85 -50.85 -58.57

Loxo Oncology Quarterly Data
Sep13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 -68.58 -21.37 -3.73 -12.08 -28.07

Competitive Comparison of Loxo Oncology's ROE %

For the Biotechnology subindustry, Loxo Oncology'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.


Loxo Oncology's ROE % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Loxo Oncology's ROE % falls into.



Loxo Oncology ROE % Calculation

Loxo Oncology's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=-148.876/( (130.168+378.21)/ 2 )
=-148.876/254.189
=-58.57 %

Loxo Oncology's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=-108.256/( (392.124+379.215)/ 2 )
=-108.256/385.6695
=-28.07 %

* 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. 2018) net income data. ROE % is displayed in the 30-year financial page.


Loxo Oncology  (NAS:LOXO) 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. 2018 )
=Net Income/Total Stockholders Equity
=-108.256/385.6695
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-108.256 / 169.88)*(169.88 / 687.869)*(687.869 / 385.6695)
=Net Margin %*Asset Turnover*Equity Multiplier
=-63.72 %*0.247*1.7836
=ROA %*Equity Multiplier
=-15.74 %*1.7836
=-28.07 %

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. 2018 )
=Net Income/Total Stockholders Equity
=-108.256/385.6695
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-108.256 / -108.256) * (-108.256 / -121.288) * (-121.288 / 169.88) * (169.88 / 687.869) * (687.869 / 385.6695)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.8926 * -71.4 % * 0.247 * 1.7836
=-28.07 %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.


Loxo Oncology ROE % Related Terms

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


Loxo Oncology (Loxo Oncology) Business Description

Traded in Other Exchanges
N/A
Address
Loxo Oncology Inc develops medicines for patients with genetically defined cancers. Its approach is based on the increasing use of genetic testing in cancer clinical medicine and improving chemistry approaches to building inhibitors against single targets in the cancer cell. Its pipeline of products includes Larotrectinib, Loxo etc.
Executives
Jennifer Burstein officer: Senior VP of Finance C/O LOXO ONCOLOGY, INC., ONE LANDMARK SQUARE, SUITE 1122, STAMFORD CT 06901
Keith T. Flaherty director 55 FRUIT STREET, YAWKEY 9E, BOSTON MA 02114
Lori Anne Kunkel director C/O PHARMACYCLICS, INC., 995 EAST ARQUES AVENUE, SUNNYVALE CA 94085
Joshua H. Bilenker director, officer: President & CEO C/O LOXO ONCOLOGY, INC., ONE LANDMARK SQUARE, SUITE 1122, STAMFORD CT 06901
Steve Elms director, 10 percent owner 888 SEVENTH AVE, 29TH FL, NEW YORK NY 10106
Alan Fuhrman director C/O AMBIT BIOSCIENCES CORPORATION, 11080 ROSELLE STREET, SAN DIEGO CA 92121
Timothy M Mayleben director 3621 SOUTH STATE ST, 695 KMS PL, ANN ARBOR MI 48108
Andrew N Schiff 10 percent owner PLANET ZANETT INC, 135 E 57TH ST, NEW YORK NY 10022
Dennis J Purcell 10 percent owner AUXILIUM PHARMACEUTICALS, INC., 160 WEST GERMANTOWN PIKE, NORRISTOWN PA 19401
Aisling Capital Iii Lp 10 percent owner 888 Seventh Avenue, 30th Fl, New York NY 10106
Aisling Capital Partners Iii Lp 10 percent owner AISLING CAPITAL LLC, 888 SEVENTH AVENUE 30TH FLOOR, NEW YORK NY 10106
Aisling Capital Partners Iii Llc 10 percent owner AISLING CAPITAL LLC, 888 SEVENTH AVENUE 30TH FLOOR, NEW YORK NY 10106
Orbimed Advisors Llc director 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Orbimed Capital Gp V Llc director 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Samuel D Isaly director 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022

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