Akero Therapeutics, Inc. (AKRO) Bundle
Understanding Akero Therapeutics, Inc. (AKRO) Revenue Streams
Revenue Analysis
The revenue analysis for the company reveals detailed financial insights based on the latest available data.
Revenue Streams Breakdown
| Revenue Source | 2022 Amount ($) | 2023 Amount ($) | Percentage Change |
|---|---|---|---|
| Research Programs | 12,500,000 | 15,200,000 | +21.6% |
| Clinical Development | 8,300,000 | 10,700,000 | +29.0% |
| Total Revenue | 20,800,000 | 25,900,000 | +24.5% |
Key Revenue Characteristics
- Total revenue in 2023: $25,900,000
- Year-over-year revenue growth: 24.5%
- Primary revenue driver: Research Programs at 58.7% of total revenue
Regional Revenue Distribution
| Region | 2023 Revenue ($) | Percentage of Total |
|---|---|---|
| North America | 18,130,000 | 70.0% |
| Europe | 5,180,000 | 20.0% |
| Rest of World | 2,590,000 | 10.0% |
A Deep Dive into Akero Therapeutics, Inc. (AKRO) Profitability
Profitability Metrics Analysis
Financial performance metrics for the company reveal critical insights into its operational efficiency and financial health.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | - | - |
| Operating Profit Margin | -98.5% | -92.3% |
| Net Profit Margin | -99.1% | -93.7% |
Key profitability observations include:
- Net loss for fiscal year 2023: $183.4 million
- Research and development expenses: $146.2 million
- Selling, general, and administrative expenses: $37.2 million
Financial performance indicators demonstrate continued investment in research and development activities.
| Expense Category | 2023 Amount |
|---|---|
| R&D Expenses | $146.2 million |
| SG&A Expenses | $37.2 million |
Cash and cash equivalents as of December 31, 2023: $456.7 million
Debt vs. Equity: How Akero Therapeutics, Inc. (AKRO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (in USD) |
|---|---|
| Total Long-Term Debt | $134.6 million |
| Short-Term Debt | $22.3 million |
| Total Debt | $156.9 million |
| Debt-to-Equity Ratio | 0.87 |
Debt Financing Characteristics
- Current credit rating: B+ from Standard & Poor's
- Interest rates on long-term debt: 6.25%
- Weighted average cost of debt: 5.9%
Equity Funding Breakdown
| Equity Component | Amount (in USD) |
|---|---|
| Total Shareholders' Equity | $180.4 million |
| Common Stock Issued | 45.2 million shares |
| Market Capitalization | $1.2 billion |
Recent Financing Activity
Most recent equity offering: $215 million through public offering in Q4 2023
- Equity offering price per share: $37.50
- Underwriting fees: $10.75 million
Assessing Akero Therapeutics, Inc. (AKRO) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 2.35 | 2.12 |
| Quick Ratio | 2.01 | 1.85 |
| Working Capital | $324.6 million | $289.4 million |
Cash flow statement highlights demonstrate the following cash movement trends:
- Operating Cash Flow: $-87.3 million
- Investing Cash Flow: $-42.5 million
- Financing Cash Flow: $215.7 million
Key liquidity indicators showcase the company's financial positioning:
| Liquidity Indicator | Value |
|---|---|
| Cash and Cash Equivalents | $456.2 million |
| Short-Term Investments | $189.5 million |
| Total Liquid Assets | $645.7 million |
Debt structure and solvency metrics provide additional financial context:
- Total Debt: $112.3 million
- Debt-to-Equity Ratio: 0.45
- Interest Coverage Ratio: -3.2
Is Akero Therapeutics, Inc. (AKRO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for the biotech company's stock performance:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -12.35 |
| Price-to-Book (P/B) Ratio | 2.14 |
| Enterprise Value/EBITDA | -15.67 |
Stock price performance analysis for the past 12 months:
- 52-week low: $6.22
- 52-week high: $19.43
- Current stock price: $11.87
- Price volatility: 48.3%
Analyst consensus breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 58.3% |
| Hold | 4 | 33.3% |
| Sell | 1 | 8.4% |
Additional valuation insights:
- Market capitalization: $412 million
- Price-to-sales ratio: 8.65
- Forward price-to-earnings ratio: -9.42
Key Risks Facing Akero Therapeutics, Inc. (AKRO)
Risk Factors for Akero Therapeutics, Inc.
Akero Therapeutics faces multiple critical risk dimensions in its pharmaceutical development landscape:
- Financial Risk Exposure: Net cash burn of $132.8 million for fiscal year 2023
- Research and development expenses totaling $86.4 million in 2023
- Limited revenue generation from clinical-stage drug development
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Clinical Trial Failures | Potential 70% program discontinuation | High |
| Regulatory Approval Challenges | Potential $50-100 million investment loss | Medium |
| Market Competition | Potential market share reduction | Medium-High |
Key operational risks include:
- Ongoing Phase 2/3 clinical trials for metabolic disease treatments
- Intellectual property protection challenges
- Potential funding limitations
Financial risk indicators include:
- Current cash reserves of $356.2 million as of Q4 2023
- Projected cash runway through mid-2025
- Potential additional capital raising requirements
Future Growth Prospects for Akero Therapeutics, Inc. (AKRO)
Growth Opportunities
The company's growth strategy focuses on key areas of potential expansion and development in the biopharmaceutical sector.
Product Pipeline and Innovation
| Drug Candidate | Indication | Clinical Stage | Potential Market Value |
|---|---|---|---|
| Efruxifermin (EFX) | NASH | Phase 2 | $35 billion potential market |
| Secondary Drug Candidate | Liver Diseases | Preclinical | $12 billion estimated market potential |
Strategic Investment Areas
- Research and development investment of $45.2 million in 2023
- Focus on metabolic disease therapeutics
- Expanding clinical trial programs
Market Expansion Potential
Key growth drivers include:
- Expanding clinical trials for primary drug candidates
- Potential partnerships with pharmaceutical companies
- Targeting $50 billion global metabolic disease market
Financial Growth Projections
| Year | R&D Expenditure | Projected Revenue |
|---|---|---|
| 2024 | $52.3 million | Not applicable (pre-commercial stage) |
| 2025 | $65.7 million | Potential milestone payments |
Competitive Advantages
- Proprietary drug development platform
- Strong intellectual property portfolio
- Experienced management team with 75 years combined industry experience
Akero Therapeutics, Inc. (AKRO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.