Has my stock been accused of fraud?Join over 160k users who know.

Ticker Price Change($) Change(%) Shares Volume Prev Close Open Gain($) Gain(%)
Ticker Status Jurisdiction Filing Date CP Start CP End CP Loss Deadline
Ticker Case Name Status CP Start CP End Deadline Settlement Amt
Ticker Name Date Analyst Firm Up/Down Target ($) Rating Change Rating Current

News

Looking Into Strongbridge Biopharma's Return On Capital Employed

Author: Benzinga Insights | May 27, 2021 11:06am

Strongbridge Biopharma (NASDAQ:SBBP) reported Q1 sales of $8.38 million. Earnings fell to a loss of $10.07 million, resulting in a 3.15% decrease from last quarter. Strongbridge Biopharma collected $8.23 million in revenue during Q4, but reported earnings showed a $10.40 million loss.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in Strongbridge Biopharma's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, Strongbridge Biopharma posted an ROCE of -0.16%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Strongbridge Biopharma is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth.

For Strongbridge Biopharma, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.

Q1 Earnings Insight

Strongbridge Biopharma reported Q1 earnings per share at $-0.11/share, which did not meet analyst predictions of $-0.1/share.

Posted In: SBBP