Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Celgene Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
- Gross Profit Margin
- The gross profit margin remained consistently high during the observed periods, starting from approximately 94.9% in early 2014 and gradually increasing to stabilize around the range of 96.15% to 96.47% by 2019. This indicates a strong ability to retain revenue after accounting for cost of goods sold, with a slight gradual improvement over time.
- Operating Profit Margin
- Operating profit margin showed considerable volatility with an initial value near 33.3% in early 2014, then fluctuating notably between 24% and 38% throughout the years. Starting around 2017, there was a general upward trend, reaching the highest point of 46.49% by late 2019. This suggests improvements in operating efficiency and cost management over the long term despite short-term fluctuations.
- Net Profit Margin
- Net profit margin demonstrated a variable trajectory with values ranging from roughly 17% to 34.64% over the analyzed period. After a dip around 2015-2016 to approximately 17%, there was a sustained recovery beginning in 2017, culminating in a peak of 34.64% by the end of 2019. This trend reflects an overall enhancement in bottom-line profitability and effective control of non-operating expenses or taxes.
- Return on Equity (ROE)
- ROE exhibited substantial volatility, starting near 30.65% in early 2014 and reaching a pronounced peak of 81.57% in mid-2018. Following this peak, ROE declined gradually to approximately 48.65% by late 2019. The peak suggests a period of highly effective use of shareholder equity, possibly driven by increased earnings or share repurchases, while the subsequent decrease indicates normalization or changes in financial structure or profitability.
- Return on Assets (ROA)
- The ROA values show an overall improving trend from about 11.53% in early 2014 to 14.22% by the end of 2019, despite some dips during 2015-2016. This indicates better utilization of asset base to generate profits over the period, reflecting operational efficiency gains and potentially improved asset management strategies.
Return on Sales
Return on Investment
Gross Profit Margin
Celgene Corp., gross profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||
| Net product sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2019 Calculation
Gross profit margin = 100
× (Gross profitQ3 2019
+ Gross profitQ2 2019
+ Gross profitQ1 2019
+ Gross profitQ4 2018)
÷ (Net product salesQ3 2019
+ Net product salesQ2 2019
+ Net product salesQ1 2019
+ Net product salesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals a consistent upward trend in gross profit and net product sales over the examined periods. Gross profit increased from 1,621 million US dollars at the end of the first quarter in 2014 to 4,351 million US dollars by the third quarter of 2019. This represents a significant growth, more than doubling over the nearly six-year span. Notably, there are steady quarterly increments with occasional larger jumps, particularly visible between the latter half of 2014 and throughout 2015, as well as in 2017 and 2018 periods.
Similarly, net product sales followed a comparable increasing trajectory. Beginning at 1,708 million US dollars in the first quarter of 2014, net product sales rose to 4,518 million US dollars by the third quarter of 2019. The growth appears relatively steady quarter-to-quarter, with marginal variations but an overall positive slope. This increase in sales is closely mirrored by the growth in gross profit, suggesting effective management of cost of goods sold, which maintains profitability alongside sales expansion.
The gross profit margin percentages, where available starting from the first quarter of 2015, remain remarkably high and stable. The margin fluctuates slightly but stays within a narrow range around 95% to 96.5%. This stability implies that the company has maintained a consistent cost structure relative to revenue from product sales, and the operational efficiency relating to production and pricing has been sustained over the periods.
- Trends in Gross Profit
- Increasing steadily from 1,621 million to 4,351 million US dollars between 2014 and 2019, reflecting successful expansion and solid profit retention.
- Trends in Net Product Sales
- Steady growth from 1,708 million to 4,518 million US dollars within the same timeframe, indicating strong market demand and sales performance.
- Gross Profit Margin Stability
- The margin remains consistently above 94.9% and close to 96%, suggesting effective cost control and pricing stability despite growing sales volumes.
Overall, the data indicates a robust financial performance marked by sustained revenue growth, expanding gross profit, and steady profit margins, which together illustrate sound operational execution and a strong competitive position over the covered periods.
Operating Profit Margin
Celgene Corp., operating profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||||
| Net product sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2019 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2019
+ Operating incomeQ2 2019
+ Operating incomeQ1 2019
+ Operating incomeQ4 2018)
÷ (Net product salesQ3 2019
+ Net product salesQ2 2019
+ Net product salesQ1 2019
+ Net product salesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's performance over the observed periods.
- Operating Income
- Operating income exhibits considerable fluctuations throughout the quarters, with a general upward trajectory over time. Initial quarters depict moderate values, followed by periods of significant increases, particularly from late 2015 onward. Marked peaks are visible towards the end of 2019, reaching the highest values within the timeframe, indicating improved operational efficiency or increased profitability.
- Net Product Sales
- Net product sales demonstrate a steady and consistent growth across the examined quarters. The data shows gradual increases from approximately 1.7 billion US dollars in early 2014 to over 4.5 billion US dollars by the latter part of 2019. This trend underscores successful sales performance and potentially expanding market demand or product portfolio growth during this period.
- Operating Profit Margin
- The operating profit margin indicates an upward movement over time, with some fluctuations. Early data points are unavailable, but starting from available quarters, the margin varies between the mid-20% range to a peak approaching nearly 47% by the end of 2019. This improvement in margin suggests enhanced cost control or higher-margin product sales contributing to increased profitability.
- Summary Insights
- Overall, the company shows positive financial momentum characterized by growth in net product sales and operating income. The increase in operating profit margin supports the view of improving profitability beyond mere sales volume expansion. The quarterly fluctuations in operating income might reflect seasonal factors, investment activities, or one-off events but do not detract from the evident strengthening financial position towards the later years of the dataset.
Net Profit Margin
Celgene Corp., net profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Net product sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2019 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ (Net product salesQ3 2019
+ Net product salesQ2 2019
+ Net product salesQ1 2019
+ Net product salesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data over multiple quarters reveals several noteworthy trends in the company's performance.
- Net Income (Loss)
- Net income exhibits considerable volatility throughout the reported periods. Initially, net income grew strongly from 280 million USD at the beginning of 2014 to a peak of 719 million USD in the first quarter of 2015. This was followed by a notable decline, including negative net income in the third quarter of 2015 (-34 million USD) and again at the end of 2017 (-81 million USD) and mid-2018 (-846 million USD). Despite these setbacks, net income recovered substantially afterward, reaching a high of 1691 million USD by the third quarter of 2019. Overall, the data indicates periods of instability followed by strong recovery phases.
- Net Product Sales
- Net product sales show a consistent upward trend over the entire timeline. Beginning at 1708 million USD in the first quarter of 2014, sales increased steadily each quarter, surpassing 4000 million USD starting from early 2018 and reaching 4518 million USD by the third quarter of 2019. This persistent growth suggests a robust market demand and effective sales strategies, supporting overall revenue expansion.
- Net Profit Margin
- Profit margins are generally strong and demonstrate improvement over time. The earliest recorded margin in the data is approximately 26.44% in the fourth quarter of 2014. Margins fluctuate moderately but display an upward trajectory overall, culminating in a peak margin of 34.64% in the third quarter of 2019. This increase in profit margin, coupled with growing sales, indicates improved operational efficiency and/or favorable pricing and cost management.
In summary, the data portrays an organization with growing sales revenue and improving profitability metrics, despite episodes of fluctuating net income, including some quarters with negative results. The steady increase in net product sales and rising profit margins imply strengthening business fundamentals, while the net income variability underscores the presence of extraordinary events or non-operating factors impacting quarterly earnings.
Return on Equity (ROE)
Celgene Corp., ROE calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2019 Calculation
ROE = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in profitability and equity over the analyzed periods.
- Net Income (Loss)
- The company's net income generally exhibited a positive and upward trajectory from March 2014 through September 2019, signaling growth in earnings over time. Notable fluctuations occurred in some quarters, such as the sharp decline into a loss of -34 million USD in September 2015 and another negative result of -81 million USD in December 2017. Nonetheless, these setbacks were followed by periods of significant recovery and strong growth, particularly evident from 2018 onwards where net income surpassed 1 billion USD in multiple quarters. The highest net income was recorded at 1,691 million USD in September 2019, indicating robust profitability in the most recent periods.
- Stockholders’ Equity
- Stockholders’ equity showed a mixed trend with periods of increase and decrease. Initially, equity increased steadily from 4,485 million USD in March 2014 to a peak of 9,850 million USD in September 2017, reflecting growing retained earnings and possibly capital inflows. Following this peak, equity declined notably to 3,430 million USD by June 2018, indicating possible share buybacks, dividend payments, or losses affecting retained earnings. From the latter part of 2018 onward, equity steadily rose again, reaching a new high of 12,087 million USD by September 2019, suggesting a recovery and strengthening of the company's capital base.
- Return on Equity (ROE)
- The ROE values indicate high and generally increasing profitability relative to equity during the periods reported. Starting at around 30% in early 2014, ROE climbed to a remarkable peak of over 81% in December 2018. Although it slightly moderated afterward, the ROE remained elevated above 48% by September 2019. These figures suggest the company efficiently generated returns on its shareholders’ equity, with peak profitability correlating to periods of strong net income growth. However, the volatility in ROE might also reflect fluctuations in equity levels, particularly during times when equity declined sharply.
Overall, the financial performance over the examined quarterly periods highlights a pattern of strong earnings growth interrupted by short-term setbacks, accompanied by fluctuating but recovering equity levels and high efficiency in generating shareholder returns. The data suggests a resilient company capable of recovering from losses while sustaining high profitability and strengthening its capital position in the long term.
Return on Assets (ROA)
Celgene Corp., ROA calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2019 Calculation
ROA = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in income, asset base, and profitability metrics over the observed period.
- Net Income (Loss)
- Net income demonstrated notable volatility. Initially, there was a positive trend with rising net income reaching peaks around the first quarter of 2015. However, a sharp decline occurred in mid-2015, including a loss recorded in the third quarter of 2015. Following this, net income steadily recovered and generally increased across the subsequent quarters, culminating in significantly higher profits by the third quarter of 2019. Despite some fluctuations, the overall direction toward increased profitability is evident by the end of the period.
- Total Assets
- Total assets showed a consistent upward trajectory, reflecting growth in the company's asset base. Starting from approximately $12.7 billion in March 2014, assets expanded steadily with some accelerated growth periods, particularly between mid-2015 and early 2016. This expansion continued with minor fluctuations and a substantial increase resulting in assets exceeding $41 billion by the third quarter of 2019. This suggests ongoing investment or asset acquisitions supporting business growth.
- Return on Assets (ROA)
- ROA data, available primarily from 2014 onwards, exhibits a generally improving profitability efficiency trend. After initial quarter volatility and a period of strong double-digit returns around 2014 to early 2015, ROA dipped to mid-single digits in late 2015 and 2016. From 2017 onward, ROA progressively trended upward again, reaching its highest levels at the end of the reported span in 2019. This indicates enhanced ability to generate earnings from the asset base over time.
In summary, the company experienced fluctuations in profitability with a temporary loss in mid-2015 but achieved a strong recovery thereafter. Asset growth was consistent and robust through the entire timeframe, supporting improved returns on assets in the latter years. The financial data collectively reflect a period of operational strengthening and increasing financial performance toward the end of the analysis period.