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Amylyx Pharmaceuticals (Amylyx Pharmaceuticals) ROE % : 4.44% (As of Dec. 2023)


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What is Amylyx Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Amylyx Pharmaceuticals's annualized net income for the quarter that ended in Dec. 2023 was $18.9 Mil. Amylyx Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $425.9 Mil. Therefore, Amylyx Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 was 4.44%.

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

AMLX' s ROE % Range Over the Past 10 Years
Min: -209.43   Med: -98.35   Max: 12.75
Current: 12.75

During the past 5 years, Amylyx Pharmaceuticals's highest ROE % was 12.75%. The lowest was -209.43%. And the median was -98.35%.

AMLX's ROE % is ranked better than
92.29% of 1361 companies
in the Biotechnology industry
Industry Median: -44.11 vs AMLX: 12.75

Amylyx Pharmaceuticals ROE % Historical Data

The historical data trend for Amylyx 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.

Amylyx Pharmaceuticals ROE % Chart

Amylyx Pharmaceuticals Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- - - -209.43 12.73

Amylyx Pharmaceuticals Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -70.49 1.82 23.90 20.77 4.44

Competitive Comparison of Amylyx Pharmaceuticals's ROE %

For the Biotechnology subindustry, Amylyx 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.


Amylyx Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

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

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



Amylyx Pharmaceuticals ROE % Calculation

Amylyx Pharmaceuticals'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 )
=49.271/( (340.607+433.432)/ 2 )
=49.271/387.0195
=12.73 %

Amylyx Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=18.924/( (418.4+433.432)/ 2 )
=18.924/425.916
=4.44 %

* 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 (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Amylyx Pharmaceuticals  (NAS:AMLX) 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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=18.924/425.916
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(18.924 / 433.796)*(433.796 / 492.019)*(492.019 / 425.916)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.36 %*0.8817*1.1552
=ROA %*Equity Multiplier
=3.84 %*1.1552
=4.44 %

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: Dec. 2023 )
=Net Income/Total Stockholders Equity
=18.924/425.916
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (18.924 / 25.904) * (25.904 / 7.736) * (7.736 / 433.796) * (433.796 / 492.019) * (492.019 / 425.916)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7305 * 3.3485 * 1.78 % * 0.8817 * 1.1552
=4.44 %

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. 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.


Amylyx Pharmaceuticals ROE % Related Terms

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


Amylyx Pharmaceuticals (Amylyx Pharmaceuticals) Business Description

Traded in Other Exchanges
N/A
Address
43 Thorndike Street, Cambridge, MA, USA, 02141
Amylyx Pharmaceuticals Inc is a clinical-stage pharmaceutical company working on developing a novel therapeutic for amyotrophic lateral sclerosis and other neurodegenerative diseases.
Executives
Joshua B Cohen director, officer: Co-Chief Executive Officer C/O AMYLYX PHARMACEUTICALS, INC., 43 THORNDIKE STREET, CAMBRIDGE MA 02141
Justin B. Klee director, officer: Co-Chief Executive Officer C/O AMYLYX PHARMACEUTICALS, INC., 43 THORNDIKE STREET, CAMBRIDGE MA 02141
Patrick D Yeramian officer: Chief Medical Officer 1815 PARKSIDE CIRCLE SOUTH, BOCA RATON FL 33486
James M Frates officer: Chief Financial Officer 88 SIDNEY ST, CAMBRIDGE MA 021394136
Karen Firestone director C/O AMYLYX PHARMACEUTICALS, INC., 43 THORNDIKE ST., CAMBRIDGE MA 02141
Gina Mazzariello officer: Chief Legal Officer C/O AMYLYX PHARMACEUTICALS, INC., 43 THORNDIKE STREET, CAMBRIDGE MA 02141
Morningside Venture Investments Ltd 10 percent owner MCCARTHY LEGAL SERVICES, 1188 CENTRE STREET, NEWTON CENTRE MA 02459
Milne George M Jr director
Margaret Olinger officer: Chief Commercial Officer C/O AMYLYX PHARMACEUTICALS, INC., 43 THORNDIKE STREET, CAMBRIDGE MA 02141
Viking Global Investors Lp 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Dragsa 96 Llc 10 percent owner 55 RAILROAD AVE., GREENWICH CT 06830
Als Invest 1 B.v. 10 percent owner EERSTE WELERINGDWARSSTRAAL 54E, 1017 TP, AMSTERDAM P7 1017
Isaac Cheng director C/O ATEA PHARMACEUTICALS, INC., 125 SUMMER STREET, BOSTON MA 02110
Mvil, Llc 10 percent owner 22ND FLOOR HANG LUNG CENTRE, 2-20 PATERSON STREET, CAUSEWAY BAY K3 00000
Ole Andreas Halvorsen 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901

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