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ARIAD Pharmaceuticals (ARIAD Pharmaceuticals) ROE % : 0.00% (As of Sep. 2016)


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What is ARIAD Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ARIAD Pharmaceuticals's annualized net income for the quarter that ended in Sep. 2016 was $-111.3 Mil. ARIAD Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Sep. 2016 was $-42.1 Mil. Therefore, ARIAD Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2016 was N/A%.

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

ARIA's ROE % is not ranked *
in the Biotechnology industry.
Industry Median: -44.08
* Ranked among companies with meaningful ROE % only.

ARIAD Pharmaceuticals ROE % Historical Data

The historical data trend for ARIAD 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.

ARIAD Pharmaceuticals ROE % Chart

ARIAD Pharmaceuticals Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -86.98 -132.66 -183.77 -122.11 -

ARIAD Pharmaceuticals Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -

Competitive Comparison of ARIAD Pharmaceuticals's ROE %

For the Biotechnology subindustry, ARIAD 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.


ARIAD Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

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

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



ARIAD Pharmaceuticals ROE % Calculation

ARIAD Pharmaceuticals's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=-231.156/( (80.801+-103.141)/ 2 )
=-231.156/-11.17
=N/A %

ARIAD Pharmaceuticals's annualized ROE % for the quarter that ended in Sep. 2016 is calculated as

ROE %=Net Income (Q: Sep. 2016 )/( (Total Stockholders Equity (Q: Jun. 2016 )+Total Stockholders Equity (Q: Sep. 2016 ))/ count )
=-111.308/( (-37.889+-46.349)/ 2 )
=-111.308/-42.119
=N/A %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


ARIAD Pharmaceuticals  (NAS:ARIA) 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. 2016 )
=Net Income/Total Stockholders Equity
=-111.308/-42.119
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-111.308 / 184.064)*(184.064 / 650.479)*(650.479 / -42.119)
=Net Margin %*Asset Turnover*Equity Multiplier
=-60.47 %*0.283*N/A
=ROA %*Equity Multiplier
=-17.11 %*N/A
=N/A %

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. 2016 )
=Net Income/Total Stockholders Equity
=-111.308/-42.119
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-111.308 / -120.644) * (-120.644 / -99.96) * (-99.96 / 184.064) * (184.064 / 650.479) * (650.479 / -42.119)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9226 * 1.2069 * -54.31 % * 0.283 * N/A
=N/A %

Note: The net income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) 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.


ARIAD Pharmaceuticals ROE % Related Terms

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


ARIAD Pharmaceuticals (ARIAD Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
ARIAD Pharmaceuticals Inc was organized as a Delaware corporation in April 1991. It is an oncology company. The Company is focused on discovery and development of breakthrough medicines to treat cancers by regulating cell signaling with small molecules. The Company's first approved cancer medicine, Iclusig (ponatinib), and its product candidates, AP26113 and ridaforolimus, were discovered internally by its scientists based on the expertise in computational and structure-based drug design. AP26113 is an investigational inhibitor of anaplastic lymphoma kinase, or ALK. In non-clinical studies, AP26113 also demonstrated that it can inhibit epidermal growth factor receptor, or EGFR, and c-ros oncogene-1, or ROS1. . Iclusig and its drug candidates and preclinical compounds are small molecules that can be readily synthesized by processes that it has developed. The Company do not own or operate manufacturing facilities for the production of clinical or commercial quantities of Iclusig or its product candidates. The company's competitors includes pharmaceutical and biotechnology companies such as Amgen Inc., AstraZeneca PLC, Bristol-Myers Squibb Company, Celgene Corporation, Eli Lilly and Company, the Roche Group, GlaxoSmithKline plc, Johnson & Johnson, Merck, Merck KGaA, Novartis AG, Pfizer, Inc., Sanofi-Aventis, Takeda Pharmaceutical Co., Ltd., and Teva Pharmaceutical Industries Ltd.Inc.
Executives
Alexander J Denner director C/O SARISSA CAPITAL MANAGEMENT LP, 660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Norbert G Riedel director BAXTER INTERNATIONAL INC, ONE BAXTER PKWY DF2-1W, DEERFIELD IL 60015
Elona Esq. Kogan officer: Sr. V. P. - General Counsel C/O SEER, INC., 3800 BRIDGE PARKWAY, SUITE 102, REDWOOD CITY CA 94065
Manmeet Singh Soni officer: EVP, CFO & Treasurer C/O PHARMACYCLICS, INC., 995 EAST ARQUES AVE, SUNNYVALE CA 94085
Timothy P Clackson officer: President, R&D, CSO C/O ARIAD PHARMACEUTICALS INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Jules Haimovitz director 601 108TH AVENUE NE, SUITE 1200, BELLEVUE WA 98004
Daniel M Bollag officer: Sr. VP, Reg. Affairs & Quality C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Hugh M Cole officer: SVP, Chief Business Officer C/O ARIAD PHARMACEUTICALS, INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
George Bickerstaff director C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Paris Panayiotopoulos director, officer: President and CEO ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Anna Protopapas director MILLENNIUM PHARMACEUTICALS, INC., 40 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Sarah J. Schlesinger director C/O ARIAD PHARMACEUTICALS, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Massimo Radaelli director C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Martin J Duvall officer: EVP, CCO MGI PHARMA, INC., 5775 WEST OLD SHAKOPEE ROAD, SUITE 100, BLOOMINGTON MN 55437
Frank Haluska officer: SVP, Clinical R&D, CMO C/O ARIAD PHARMACEUTICALS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139

ARIAD Pharmaceuticals (ARIAD Pharmaceuticals) Headlines

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