Post a Free Blog

Submit A Press Release

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Action
Animation
ATP Tour (ATP)
Auto Racing
Baseball
Basketball
Boxing
Breaking News
Business
Business
Business Newsletter
Call of Duty (CALLOFDUTY)
Canadian Football League (CFL)
Car
Celebrity
Champions Tour (CHAMP)
Comedy
CONCACAF
Counter Strike Global Offensive (CSGO)
Crime
Dark Comedy
Defense of the Ancients (DOTA)
Documentary and Foreign
Drama
eSports
European Tour (EPGA)
Fashion
FIFA
FIFA Women’s World Cup (WWC)
FIFA World Cup (FIFA)
Fighting
Football
Formula 1 (F1)
Fortnite
Golf
Health
Hockey
Horror
IndyCar Series (INDY)
International Friendly (FRIENDLY)
Kids & Family
League of Legends (LOL)
LPGA
Madden
Major League Baseball (MLB)
Mixed Martial Arts (MMA)
MLS
Movie and Music
Movie Trailers
Music
Mystery
NASCAR Cup Series (NAS)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)
National Women's Soccer (NWSL)
NBA Development League (NBAGL)
NBA2K
NCAA Baseball (NCAABBL)
NCAA Basketball (NCAAB)
NCAA Football (NCAAF)
NCAA Hockey (NCAAH)
Olympic Mens (OLYHKYM)
Other
Other Sports
Overwatch
PGA
Politics
Premier League (PREM)
Romance
Sci-Fi
Science
Soccer
Sports
Sports
Technology
Tennis
Thriller
Truck Series (TRUCK)
True Crime
Ultimate Fighting Championship (UFC)
US
Valorant
Western
Women’s National Basketball Association (WNBA)
Women’s NCAA Basketball (WNCAAB)
World
World Cup Qualifier (WORLDCUP)
WTA Tour (WTA)
Xfinity (XFT)
XFL
0
-- Advertisement --spot_img
HomeBusinessArcutis Biotherapeutics, Inc. (NASDAQ:ARQT) Financial Analysis

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) Financial Analysis

Add to Favorite
Added to Favorite


Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is a biopharmaceutical company focused on developing treatments for dermatological diseases. The company is in the clinical stage, which means it is still testing its products for safety and effectiveness before they can be marketed. This stage often involves high costs and uncertain returns, which is reflected in the company’s financial metrics.

Arcutis has a Return on Invested Capital (ROIC) of -48.01% and a Weighted Average Cost of Capital (WACC) of 12.62%. This results in a ROIC to WACC ratio of -3.80, indicating that the company is currently generating returns that are significantly lower than its cost of capital. This is a common challenge for companies in the biopharmaceutical sector, where high research and development costs can lead to negative returns during the clinical stage.

When comparing Arcutis to its peers, Keros Therapeutics, Inc. (KROS) has a ROIC of -35.71% and a WACC of 10.40%, resulting in a ROIC to WACC ratio of -3.43. Crinetics Pharmaceuticals, Inc. (CRNX) has a ROIC of -24.56% and a WACC of 6.77%, with a ratio of -3.63. Revolution Medicines, Inc. (RVMD) stands out with the highest ratio of -2.64, despite a ROIC of -28.61% and a WACC of 10.83%.

Phathom Pharmaceuticals, Inc. (PHAT) and Black Diamond Therapeutics, Inc. (BDTX) have ROIC to WACC ratios of -2.88 and -5.33, respectively. PHAT’s ROIC is -94.72% with a WACC of 32.88%, while BDTX has a ROIC of -74.74% and a WACC of 14.01%. These figures highlight the varying degrees of efficiency in generating returns relative to the cost of capital among these companies.

Revolution Medicines, with the highest ROIC to WACC ratio, is the most efficient among its peers in generating returns relative to its cost of capital. This suggests that RVMD, while still operating at a loss, is closer to achieving a positive return on its invested capital compared to its peers. Arcutis, with a less favorable ratio, faces a larger gap between its cost of capital and the returns it is currently generating.

Subscribe to get Latest News Updates

Latest News

You may like more
more

BRT Apartments Corp. (NYSE:BRT) Quarterly Earnings Insight

Negative EPS but steady revenue projections indicate financial challenges...

HealthEquity, Inc. (NASDAQ:HQY) Earnings Preview: A Look into the Future

Earnings per share (EPS) is estimated to be $0.71,...

Asian Markets Rally Amid Optimism Over Chinese Economic Stimulus

Asian stocks climbed on Monday as investor sentiment improved...