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Royalty Pharma (Royalty Pharma) Asset Turnover : 0.04 (As of Dec. 2023)


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What is Royalty Pharma Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Royalty Pharma's Revenue for the three months ended in Dec. 2023 was $596 Mil. Royalty Pharma's Total Assets for the quarter that ended in Dec. 2023 was $16,119 Mil. Therefore, Royalty Pharma's Asset Turnover for the quarter that ended in Dec. 2023 was 0.04.

Asset Turnover is linked to ROE % through Du Pont Formula. Royalty Pharma's annualized ROE % for the quarter that ended in Dec. 2023 was 31.22%. It is also linked to ROA % through Du Pont Formula. Royalty Pharma's annualized ROA % for the quarter that ended in Dec. 2023 was 12.27%.


Royalty Pharma Asset Turnover Historical Data

The historical data trend for Royalty Pharma's Asset Turnover 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.

Royalty Pharma Asset Turnover Chart

Royalty Pharma Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial 0.15 0.15 0.14 0.13 0.14

Royalty Pharma Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Asset Turnover 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 0.03 0.04 0.03 0.03 0.04

Competitive Comparison of Royalty Pharma's Asset Turnover

For the Biotechnology subindustry, Royalty Pharma's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.


Royalty Pharma's Asset Turnover Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Royalty Pharma's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Royalty Pharma's Asset Turnover falls into.



Royalty Pharma Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Royalty Pharma's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=2354.554/( (16813.466+16381.851)/ 2 )
=2354.554/16597.6585
=0.14

Royalty Pharma's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=596.068/( (15855.524+16381.851)/ 2 )
=596.068/16118.6875
=0.04

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Royalty Pharma  (NAS:RPRX) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Royalty Pharma's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=1977.36/6332.7095
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1977.36 / 2384.272)*(2384.272 / 16118.6875)*(16118.6875/ 6332.7095)
=Net Margin %*Asset Turnover*Equity Multiplier
=82.93 %*0.1479*2.5453
=ROA %*Equity Multiplier
=12.27 %*2.5453
=31.22 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Royalty Pharma's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=1977.36/16118.6875
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1977.36 / 2384.272)*(2384.272 / 16118.6875)
=Net Margin %*Asset Turnover
=82.93 %*0.1479
=12.27 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Royalty Pharma Asset Turnover Related Terms

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Royalty Pharma (Royalty Pharma) Business Description

Traded in Other Exchanges
Address
110 East 59th Street, FL 33, New York, NY, USA, 10022
Royalty Pharma PLC is the largest buyer of biopharmaceutical royalties. The firm has a portfolio of royalties that entitles it to payments based on the sales of biopharma products. Royalty Pharma receives royalties on more than 35 commercial products, including AbbVie and Johnson & Johnson's Imbruvica (for chronic lymphocytic leukemia and other blood cancers), Biogen's Tysabri (for relapsing forms of multiple sclerosis), Vertex's cystic fibrosis franchise, and 10 development-stage product candidates.
Executives
Rory B Riggs director 65 RAILROAD AVE, RIDGEFIELD NJ 07657
Avara Management Ltd 10 percent owner C/O GISEV FAMILY OFFICE SA, CONTRADA DI SASSELLO 2, LUGANO V8 6900
Terrance P. Coyne officer: EVP & CFO C/O ROYALTY PHARMA PLC, 110 EAST 59TH STREET, NEW YORK NY 10022
Pablo G. Legorreta director, officer: CEO, Chairman of the Board 110 E 59TH STREET, SUITE 3300, NEW YORK NY 10022
George W. Lloyd officer: EVP, Investments & GC C/O ROYALTY PHARMA PLC, 110 EAST 59TH STREET, NEW YORK NY 10022
Marshall Urist officer: EVP, Research & Investments C/O ROYALTY PHARMA PLC, 110 EAST 59TH STREET, NEW YORK NY 10022
Mario Germano Giuliani director, 10 percent owner C/O GISEV FAMILY OFFICE SA, CONTRADA DI SASSELLO 2, LUGANO V8 6900
James F. Reddoch officer: EVP, Research & Investments C/O ROYALTY PHARMA PLC, 110 EAST 59TH STREET, NEW YORK NY 10022
Nogra Group Sicaf Sif Gg Strategic 10 percent owner C/O NOGRA GROUP SICAF-SIF S.A., 18 AVENUE DE LA PORTE NEUVE, LUXEMBOURG N4 L-2227
Nogra Group Sicaf - Sif S.a. 10 percent owner 18 AVENUE DE LA PORTE NEUVE, LUXEMBOURG N4 L-2227
Catherine M. Engelbert director 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Errol B Desouza director 215 COLLEGE ROAD, PARAMUS NJ 07652
Henry A Fernandez director MSCI INC., 88 PINE STREET, NEW YORK NY 10005
Gregory Norden director 16640 CHESTERFIELD GROVE DRIVE, SUITE 200, CHESTERFIELD MO 63005
Ted W Love director C/O GLOBAL BLOOD THERAPEUTICS, INC., 400 EAST JAMIE COURT, SUITE 101, SOUTH SAN FRANCISCO CA 94080