Return on Equity (ROE)
since 2005
Calculation
Celgene Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Celgene1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 65.67% | = | 100 | × | 4,046) | ÷ | 6,161) |
| Dec 31, 2017 | 42.48% | = | 100 | × | 2,940) | ÷ | 6,921) |
| Dec 31, 2016 | 30.29% | = | 100 | × | 1,999) | ÷ | 6,599) |
| Dec 31, 2015 | 27.07% | = | 100 | × | 1,602) | ÷ | 5,919) |
| Dec 31, 2014 | 30.65% | = | 100 | × | 2,000) | ÷ | 6,525) |
| Dec 31, 2013 | 25.94% | = | 100 | × | 1,450) | ÷ | 5,590) |
| Dec 31, 2012 | 25.57% | = | 100 | × | 1,456) | ÷ | 5,694) |
| Dec 31, 2011 | 23.91% | = | 100 | × | 1,318) | ÷ | 5,513) |
| Dec 31, 2010 | 14.71% | = | 100 | × | 881) | ÷ | 5,984) |
| Dec 31, 2009 | 17.68% | = | 100 | × | 777) | ÷ | 4,395) |
| Dec 31, 2008 | -43.93% | = | 100 | × | (1,534) | ÷ | 3,491) |
| Dec 31, 2007 | 7.96% | = | 100 | × | 226) | ÷ | 2,844) |
| Dec 31, 2006 | 3.49% | = | 100 | × | 69) | ÷ | 1,976) |
| Dec 31, 2005 | 10.01% | = | 100 | × | 64) | ÷ | 636) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2018 is characterized by an initial period of instability followed by a sustained and significant expansion in profitability and capital efficiency. The most notable feature of this trajectory is the transition from a volatile return on equity (ROE) to a state of exceptionally high shareholder returns.
- Net Income Volatility and Recovery
- Net income exhibited a severe contraction in 2008, falling to a loss of 1,534 million USD. However, a strong recovery began in 2009, with earnings growing consistently from 777 million USD to reach a peak of 4,046 million USD by 2018. This represents a substantial long-term growth trend in absolute profitability following the 2008 downturn.
- Stockholders' Equity Evolution
- Equity grew rapidly between 2005 and 2010, increasing from 636 million USD to 5,984 million USD. Following this period of rapid accumulation, stockholders' equity remained relatively stable, fluctuating within a range of approximately 5.5 billion USD to 6.9 billion USD through 2018. The lack of significant equity expansion in the later years suggests that growth was driven by operational efficiency rather than an increase in the capital base.
- Return on Equity (ROE) Trends
- The ROE reflects the volatility of net income, plummeting to -43.93% in 2008. Post-2008, a consistent upward trend is observed, with the ratio climbing from 17.68% in 2009 to 65.67% in 2018. The acceleration of ROE in the final three years of the period is particularly pronounced, rising from 27.07% in 2015 to 65.67% in 2018.
- Analysis of Capital Efficiency
- The divergence between stagnating stockholders' equity and rapidly increasing net income after 2014 indicates a significant increase in asset productivity. The surge in ROE toward the end of the period suggests that the entity became increasingly efficient at generating profits from its existing equity base, resulting in an exponential increase in shareholder value creation.
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Comparison to Competitors
Celgene Corp., ROE, long-term trends, comparison to competitors
| Celgene Corp. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 65.67% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | 42.48% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 30.29% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | 27.07% | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | 30.65% | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | 25.94% | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
| Dec 31, 2012 | 25.57% | 156.85% | 22.80% | 14.39% | 12.58% | 27.69% | 27.84% | 16.74% | 11.63% | 17.93% | 60.24% | 7.62% | -10.71% |
| Dec 31, 2011 | 23.91% | — | 19.35% | 23.25% | 12.85% | 32.11% | 41.60% | 16.94% | 11.50% | 12.18% | -45.65% | 8.84% | 3.76% |
| Dec 31, 2010 | 14.71% | — | 19.32% | 19.74% | 13.08% | 40.82% | 49.48% | 23.57% | 1.58% | 9.40% | -19.79% | 6.74% | -149.74% |
| Dec 31, 2009 | 17.68% | — | 20.32% | 71.49% | 9.90% | 45.45% | 41.40% | 24.25% | 21.85% | 9.59% | -17.10% | 5.51% | -58.57% |
| Dec 31, 2008 | -43.93% | — | 20.58% | 42.86% | 13.43% | -30.76% | 48.43% | 30.46% | 41.63% | 14.08% | -19.75% | 6.66% | -192.51% |
| Dec 31, 2007 | 7.96% | — | 17.72% | 20.50% | 15.08% | 21.61% | 46.69% | 24.41% | 18.01% | 12.53% | -22.94% | 5.25% | -144.23% |
| Dec 31, 2006 | 3.49% | — | 15.56% | 15.86% | 16.89% | 24.25% | -65.54% | 28.11% | 25.25% | 27.10% | -47.24% | 1.21% | -40.89% |
| Dec 31, 2005 | 10.01% | — | 17.96% | 26.77% | 17.67% | 18.34% | 26.88% | 27.49% | 25.85% | 12.32% | -83.72% | 7.99% | -85.05% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Celgene Corp., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Celgene Corp. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2018 | 65.67% | 26.29% |
| Dec 31, 2017 | 42.48% | 14.59% |
| Dec 31, 2016 | 30.29% | 22.19% |
| Dec 31, 2015 | 27.07% | 21.44% |
| Dec 31, 2014 | 30.65% | 20.91% |
| Dec 31, 2013 | 25.94% | 20.33% |
| Dec 31, 2012 | 25.57% | 18.27% |
| Dec 31, 2011 | 23.91% | 15.52% |
| Dec 31, 2010 | 14.71% | 13.99% |
| Dec 31, 2009 | 17.68% | 20.34% |
| Dec 31, 2008 | -43.93% | 21.31% |
| Dec 31, 2007 | 7.96% | 17.07% |
| Dec 31, 2006 | 3.49% | 21.86% |
| Dec 31, 2005 | 10.01% | 19.08% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Celgene Corp., ROE, long-term trends, comparison to industry (health care)
| Celgene Corp. | Health Care | |
|---|---|---|
| Dec 31, 2018 | 65.67% | 21.27% |
| Dec 31, 2017 | 42.48% | 13.77% |
| Dec 31, 2016 | 30.29% | 18.53% |
| Dec 31, 2015 | 27.07% | 18.52% |
| Dec 31, 2014 | 30.65% | 19.17% |
| Dec 31, 2013 | 25.94% | 18.81% |
| Dec 31, 2012 | 25.57% | 18.20% |
| Dec 31, 2011 | 23.91% | 15.90% |
| Dec 31, 2010 | 14.71% | 14.85% |
| Dec 31, 2009 | 17.68% | 20.14% |
| Dec 31, 2008 | -43.93% | 20.29% |
| Dec 31, 2007 | 7.96% | 17.87% |
| Dec 31, 2006 | 3.49% | 20.49% |
| Dec 31, 2005 | 10.01% | 18.28% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).