Neurocrine Biosciences (NASDAQ:NBIX) has had a rough three months with its share price down 18%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Neurocrine Biosciences’ ROE in this article.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.
View our latest analysis for Neurocrine Biosciences
How Do You Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Neurocrine Biosciences is:
14% = US$339m ÷ US$2.5b (Based on the trailing twelve months to June 2024).
The ‘return’ refers to a…
