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Sucampo Pharmaceuticals (Sucampo Pharmaceuticals) ROE % : 125.69% (As of Sep. 2017)


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What is Sucampo Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sucampo Pharmaceuticals's annualized net income for the quarter that ended in Sep. 2017 was $41.5 Mil. Sucampo Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $33.0 Mil. Therefore, Sucampo Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2017 was 125.69%.

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

SCMP's ROE % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 4.16
* Ranked among companies with meaningful ROE % only.

Sucampo Pharmaceuticals ROE % Historical Data

The historical data trend for Sucampo 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.

Sucampo Pharmaceuticals ROE % Chart

Sucampo Pharmaceuticals Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.40 13.76 18.58 39.55 14.58

Sucampo Pharmaceuticals Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 24.10 39.20 10.84 -722.30 125.69

Competitive Comparison of Sucampo Pharmaceuticals's ROE %

For the Drug Manufacturers - Specialty & Generic subindustry, Sucampo 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.


Sucampo Pharmaceuticals's ROE % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Sucampo Pharmaceuticals's ROE % distribution charts can be found below:

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



Sucampo Pharmaceuticals ROE % Calculation

Sucampo Pharmaceuticals's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=18.487/( (86.449+167.099)/ 2 )
=18.487/126.774
=14.58 %

Sucampo Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=41.468/( (26.348+39.634)/ 2 )
=41.468/32.991
=125.69 %

* 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. 2017) net income data. ROE % is displayed in the 30-year financial page.


Sucampo Pharmaceuticals  (NAS:SCMP) 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. 2017 )
=Net Income/Total Stockholders Equity
=41.468/32.991
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(41.468 / 245.064)*(245.064 / 376.6135)*(376.6135 / 32.991)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.92 %*0.6507*11.4156
=ROA %*Equity Multiplier
=11.01 %*11.4156
=125.69 %

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. 2017 )
=Net Income/Total Stockholders Equity
=41.468/32.991
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (41.468 / 70.284) * (70.284 / 84.8) * (84.8 / 245.064) * (245.064 / 376.6135) * (376.6135 / 32.991)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.59 * 0.8288 * 34.6 % * 0.6507 * 11.4156
=125.69 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) 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.


Sucampo Pharmaceuticals ROE % Related Terms

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


Sucampo Pharmaceuticals (Sucampo Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
Sucampo Pharmaceuticals Inc is a part of the healthcare sector in the United States. As a global pharmaceutical company, it commercializes drugs for the treatment of various gastrointestinal, ophthalmic and oncology-based inflammatory disorders. It currently generates revenue mainly from product royalties, product sales, upfront and milestone payments, and reimbursements for development activities.
Executives
Peter Greenleaf officer: Chief Executive Officer ONE MEDIMMUNE WAY, GAITHERSBURG MD 20878
Maureen Oconnell director
Karen L. Smith director C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2
Jones W. Bryan officer: Sr. Vice Pres., BD & Licensing C/O SUPERNUS PHARMACEUTICALS, INC., 1550 EAST GUDE DRIVE, ROCKVILLE MD 20850
Robert J. Spiegel director C/O GERON CORPORATION, 230 CONSTITUTION DRIVE, MENLO PARK CA 94025
Timothy P Walbert director 1033 SKOKIE BOULEVARD, SUITE 355, NORTHBROOK IL 60062
Peter A Kiener officer: Chief Science Officer 40 GUEST STREET, BOSTON MA 02135
John Johnson director DENDREON CORPORATION, 1301 2ND AVENUE, SEATTLE WA 98101
Peter P. Pfreundschuh officer: CFO C/O IMMUNOMEDICS, INC., 300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Paul R Edick director C/O NEWLINK GENETICS CORP., 2503 SOUTH LOOP DR., SUITE 5100, AMES IA 50010
Thomas J Knapp other: Former Officer 4640 SW MACADAM AVE., SUITE 270, PORTLAND OR 97239
William Ashton director C/O HARRISON CONSULTING GROUP, PO BOX 283, NEWTOWN SQUARE PA 19073
Timothy I Maudlin director 18739 VOGEL FARM TRAIL, EDEN PRAIRIE MN 55347
Nantahala Capital Management, Llc 10 percent owner 130 MAIN ST., 2ND FLOOR, NEW CANAAN CT 06840
Mariam E Morris officer: Chief Acctg. Officer, Treas. C/O SUCAMPO PHARMACEUTICALS, 4520 EAST-WEST HIGHWAY, SUITE 300, BETHESDA MD 20814

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