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Arcellx (Arcellx) ROE % : -5.86% (As of Mar. 2024)


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What is Arcellx ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Arcellx's annualized net income for the quarter that ended in Mar. 2024 was $-28.8 Mil. Arcellx's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $491.0 Mil. Therefore, Arcellx's annualized ROE % for the quarter that ended in Mar. 2024 was -5.86%.

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

ACLX' s ROE % Range Over the Past 10 Years
Min: -452.26   Med: -236.37   Max: -13.69
Current: -13.69

During the past 5 years, Arcellx's highest ROE % was -13.69%. The lowest was -452.26%. And the median was -236.37%.

ACLX's ROE % is ranked better than
71.74% of 1366 companies
in the Biotechnology industry
Industry Median: -43.41 vs ACLX: -13.69

Arcellx ROE % Historical Data

The historical data trend for Arcellx'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.

Arcellx ROE % Chart

Arcellx Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- - - -452.26 -20.48

Arcellx Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -43.00 -31.94 -56.21 21.12 -5.86

Competitive Comparison of Arcellx's ROE %

For the Biotechnology subindustry, Arcellx'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.


Arcellx's ROE % Distribution in the Biotechnology Industry

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

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



Arcellx ROE % Calculation

Arcellx's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-70.69/( (204.954+485.38)/ 2 )
=-70.69/345.167
=-20.48 %

Arcellx's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-28.792/( (485.38+496.573)/ 2 )
=-28.792/490.9765
=-5.86 %

* 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. 2024) net income data. ROE % is displayed in the 30-year financial page.


Arcellx  (NAS:ACLX) 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. 2024 )
=Net Income/Total Stockholders Equity
=-28.792/490.9765
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-28.792 / 157.024)*(157.024 / 802.4135)*(802.4135 / 490.9765)
=Net Margin %*Asset Turnover*Equity Multiplier
=-18.34 %*0.1957*1.6343
=ROA %*Equity Multiplier
=-3.59 %*1.6343
=-5.86 %

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. 2024 )
=Net Income/Total Stockholders Equity
=-28.792/490.9765
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-28.792 / -28.792) * (-28.792 / -63.24) * (-63.24 / 157.024) * (157.024 / 802.4135) * (802.4135 / 490.9765)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.4553 * -40.27 % * 0.1957 * 1.6343
=-5.86 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.


Arcellx ROE % Related Terms

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


Arcellx (Arcellx) Business Description

Traded in Other Exchanges
N/A
Address
25 West Watkins Mill Road, Suite A, Gaithersburg, MD, USA, 20878
Arcellx Inc is a clinical-stage biotechnology company reimagining cell therapy through the development of innovative immunotherapies for patients with cancer and other incurable diseases.
Executives
Michelle Gilson officer: Chief Financial Officer 25 WEST WATKINS MILL ROAD, SUITE A, GAITHERSBURG MD 20878
Christopher Heery officer: Chief Medical Officer C/O PRECISION BIOSCIENCES, INC., 302 E. PETTIGREW STREET, SUITE A-100, DURHAM NC 27701
Rami Elghandour director, officer: See Remarks 15 BARCELONA CIR, REDWOOD CITY CA 94065
Jill Carroll director C/O APPLIED GENETIC TECHNOLOGIES CORP., 11801 RESEARCH DRIVE, SUITE D, ALACHUA FL 32615
Sr One Capital Fund I Aggregator Lp 10 percent owner C/O DESIGN THERAPEUTICS, INC., 6005 HIDDEN VALLEY ROAD, SUITE 110, CARLSBAD CA 92011
Scott D Sandell 10 percent owner
Forest Baskett 10 percent owner
Mohamad Makhzoumi 10 percent owner 2855 SAND HILL ROAD, MENLO PARK CA 94025
Florence Anthony A. Jr. 10 percent owner 5425 WISCONSIN AVENUE, SUITE 800, CHEVY CHASE MD 20815
New Enterprise Associates 15, L.p. 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Olivia C Ware director 11726 SAN VICENTE BLVD, SUITE 650, LOS ANGELES CA 90049
Novo Holdings A/s 10 percent owner TUBORG HAVNEVEJ 19, HELLERUP G7 2900
Sr One Capital Management, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Sr One Co-invest Ii Manager, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Nea Partners 15, L.p. 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093