Synthorx (Synthorx) ROIC % : -734.56% (As of Sep. 2019)

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What is Synthorx ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Synthorx's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2019 was -734.56%.

As of today (2024-04-26), Synthorx's WACC % is 0.00%. Synthorx's ROIC % is 0.00% (calculated using TTM income statement data). Synthorx earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Synthorx ROIC % Historical Data

The historical data trend for Synthorx's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Synthorx ROIC % Chart

Synthorx Annual Data

Trend

Dec16

Dec17

Dec18

ROIC %

-725.75

-900.00

-1,295.72

Synthorx Quarterly Data
	Dec16	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
ROIC %	Get a 7-Day Free Trial				-795.84	-1,317.35	-1,179.52	-910.49	-734.56

Competitive Comparison of Synthorx's ROIC %

For the Biotechnology subindustry, Synthorx's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Synthorx's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Synthorx's ROIC % distribution charts can be found below:

* The bar in red indicates where Synthorx's ROIC % falls into.

Synthorx ROIC % Calculation

Synthorx's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROIC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-20.9 * ( 1 - 0% )	/	( (0.869	+	2.357)	/ 2 )
=	-20.9	/	1.613
=	-1,295.72 %

where

	Invested Capital		(A: Dec. 2017 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4.469	-	0.754	-	( 3.661	-	max(0, 0.881	-	3.727	+	3.661	))
=	0.869

	Invested Capital		(A: Dec. 2018 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	191.506	-	6.147	-	( 188.356	-	max(0, 7.042	-	190.044	+	188.356	))
=	2.357

Synthorx's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2019 is calculated as:

	ROIC % (Q: Sep. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Sep. 2019 ))	/ count )
=	-52.708 * ( 1 - 0% )	/	( (6.104	+	8.247)	/ 2 )
=	-52.708	/	7.1755
=	-734.56 %

where

	Invested Capital		(Q: Jun. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	173.393	-	5.966	-	( 165.178	-	max(0, 7.409	-	168.732	+	165.178	))
=	6.104

	Invested Capital		(Q: Sep. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	163.671	-	6.121	-	( 150.886	-	max(0, 8.357	-	157.66	+	150.886	))
=	8.247

Note: The Operating Income data used here is four times the quarterly (Sep. 2019) data.

Synthorx (NAS:THOR) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Synthorx's WACC % is 0.00%. Synthorx's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Synthorx ROIC % Related Terms

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Synthorx (Synthorx) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Synthorx Inc (NAS:THOR) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

11099 North Torrey Pines Road, Suite 290, La Jolla, CA, USA, 92037

Website

http://www.synthorx.com

Executives

Powell Andrew Kenneth William	director	C/O COLLAGENEX PHARMACEUTICALS, INC., 41 UNIVERSITY DRIVE, NEWTOWN PA 18940
Ra Capital Healthcare Fund Lp	10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Management, L.p.	10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Peter Kolchinsky	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Peter A. Thompson	director, 10 percent owner	C/O ANTHERA PHARMACEUTICALS, INC., 25801 INDUSTRIAL BOULEVARD, SUITE B, HAYWARD CA 94545
Vickie L Capps	director	2985 SCOTT STREET, VISTA CA 92083
Rajeev M. Shah	10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Jay Lichter	director	C/O ARATANA THERAPEUTICS, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 340, LEAWOOD KS 66211
Laura Shawver	director, officer: President and CEO	1255 CRESCENT GREEN DRIVE, SUITE 250, CARY NC 27518
Avalon Ventures X, L.p.	10 percent owner	1134 KLINE STREET, LA JOLLA CA 92037
Orbimed Advisors Llc	director, 10 percent owner	601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Orbimed Capital Gp Vii Llc	10 percent owner	601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022