Audeo Oncology (Audeo Oncology) ROC % : -1,511.67% (As of Sep. 2012)

View and export this data going back to . Start your Free Trial

What is Audeo Oncology ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Audeo Oncology's annualized return on capital (ROC %) for the quarter that ended in Sep. 2012 was -1,511.67%.

As of today (2024-05-14), Audeo Oncology's WACC % is 0.00%. Audeo Oncology's ROC % is 0.00% (calculated using TTM income statement data). Audeo Oncology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Audeo Oncology ROC % Historical Data

The historical data trend for Audeo Oncology's ROC % 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.

* Premium members only.

Audeo Oncology ROC % Chart

Audeo Oncology Annual Data

Trend

Jun10

Jun11

Jun12

ROC %

-7,411.11

-1,871.16

-1,020.01

Audeo Oncology Quarterly Data
	Jun11	Mar12	Jun12	Sep12
ROC %	-1,732.32	-	-2,068.36	-1,511.67

Audeo Oncology ROC % Calculation

Audeo Oncology's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2012 is calculated as:

	ROC % (A: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2011 )	+	Invested Capital (A: Jun. 2012 ))	/ count )
=	-9.481 * ( 1 - 0% )	/	( (0.792	+	1.067)	/ 2 )
=	-9.481	/	0.9295
=	-1,020.01 %

where

	Invested Capital		(A: Jun. 2011 )
=	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	))
=	0.912	-	22.875	-	( 0.181	-	max(0, 22.968	-	0.213	+	0.181	))
=	0.792

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	9.712	-	2.027	-	( 7.656	-	max(0, 2.604	-	9.222	+	7.656	))
=	1.067

Audeo Oncology's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2012 is calculated as:

	ROC % (Q: Sep. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2012 )	+	Invested Capital (Q: Sep. 2012 ))	/ count )
=	-19.236 * ( 1 - 0% )	/	( (1.067	+	1.478)	/ 2 )
=	-19.236	/	1.2725
=	-1,511.67 %

where

	Invested Capital		(Q: Jun. 2012 )
=	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	))
=	9.712	-	2.027	-	( 7.656	-	max(0, 2.604	-	9.222	+	7.656	))
=	1.067

	Invested Capital		(Q: Sep. 2012 )
=	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	))
=	7.805	-	4.509	-	( 4.524	-	max(0, 5.534	-	7.352	+	4.524	))
=	1.478

Note: The Operating Income data used here is four times the quarterly (Sep. 2012) data.

Audeo Oncology (DELISTED:AURX) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Audeo Oncology's WACC % is 0.00%. Audeo Oncology's ROC % is 0.00% (calculated using TTM income statement data). Audeo Oncology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Audeo Oncology ROC % Related Terms

Thank you for viewing the detailed overview of Audeo Oncology's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Audeo Oncology (Audeo Oncology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Audeo Oncology Inc (DELISTED:AURX) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Website

http://www.audeooncology.com

Audeo Oncology, Inc was incorporated in Delaware in June 2012. It is a late stage biopharmaceutical company utilizing its Hyaluronic Acid Chemotransport Technology, or HyACT, to target cancer drugs preferentially to tumor cells to enhance drug activity. HyACT is a flexible platform technology designed to increase the effectiveness of anti-cancer agents without increasing treatment toxicity. It seeks to reduce the risks related to drug development by using known anti-cancer drugs, and aim to enhance their commercial value by improving their effectiveness. The Company's lead HyACT product candidate, HA-Irinotecan, is currently in a pivotal Phase III clinical trial for metastatic colorectal cancer, or mCRC. HA-Irinotecan is also in an investigator-sponsored Phase II clinical trial for small cell lung cancer, or SCLC. It also has two other HyACT product candidates that have successfully completed Phase I clinical trials. In addition to its current clinical-stage product candidates, it aims to develop a pipeline of product candidates by exploiting its significant know-how in cancer stem cell biology and cancer metabolism combined with the Versatile Assembly on Stable Templates, or VAST, molecule drug discovery technology that it will in-license. The Company's lead product candidate is HyACT-targeted irinotecan, or HA-Irinotecan, for the treatment of mCRC. Irinotecan, which is marketed in major markets by Pfizer as Camptosar, is an off-patent chemotherapy drug widely used in the treatment of mCRC. Government authorities in the United States (including federal, state and local authorities) and in other countries extensively regulate the manufacture, research, clinical development, labeling, packaging, distribution, post-approval monitoring and reporting, advertising, promotion, export and import of pharmaceutical products, such as those it is developing.