ASEP Medical Holdings (ASEP Medical Holdings) ROC % : -14.33% (As of Mar. 2024)

View and export this data going back to 2022. Start your Free Trial

What is ASEP Medical Holdings 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 %. ASEP Medical Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -14.33%.

As of today (2024-06-06), ASEP Medical Holdings's WACC % is 9.63%. ASEP Medical Holdings's ROC % is -26.92% (calculated using TTM income statement data). ASEP Medical Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ASEP Medical Holdings ROC % Historical Data

The historical data trend for ASEP Medical Holdings'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.

ASEP Medical Holdings ROC % Chart

ASEP Medical Holdings Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

-7.82

-20.92

-31.01

ASEP Medical Holdings Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial								-27.46	-36.37	-27.82	-30.75	-14.33

ASEP Medical Holdings ROC % Calculation

ASEP Medical Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-5.755 * ( 1 - 0% )	/	( (17.976	+	19.141)	/ 2 )
=	-5.755	/	18.5585
=	-31.01 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	19.933	-	0.389	-	( 1.568	-	max(0, 0.389	-	2.502	+	1.568	))
=	17.976

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	19.091	-	0.505	-	( 0.048	-	max(0, 0.742	-	0.187	+	0.048	))
=	19.141

ASEP Medical Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-2.708 * ( 1 - 0% )	/	( (19.141	+	18.666)	/ 2 )
=	-2.708	/	18.9035
=	-14.33 %

where

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	19.091	-	0.505	-	( 0.048	-	max(0, 0.742	-	0.187	+	0.048	))
=	19.141

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	18.641	-	0.87	-	( 0.014	-	max(0, 1.051	-	0.156	+	0.014	))
=	18.666

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

ASEP Medical Holdings (OTCPK:SEPSF) 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, ASEP Medical Holdings's WACC % is 9.63%. ASEP Medical Holdings's ROC % is -26.92% (calculated using TTM income statement data). ASEP Medical Holdings 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.

ASEP Medical Holdings ROC % Related Terms

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

ASEP Medical Holdings (ASEP Medical Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » ASEP Medical Holdings Inc (OTCPK:SEPSF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

JJ8:Germany ASEP:Canada

Address

730 View Street, Suite 420, Victoria, BC, CAN, V8W 3Y7

Website

https://www.asepmedical.com

ASEP Medical Holdings Inc is a biotechnology firm pursuing the commercialization of broad-spectrum peptide technology. The Company is dedicated to addressing the global issue of antibiotic failure by developing novel solutions for significant unmet medical needs in human medicine and is engaged in the business of acquiring research and development assets, technology, or businesses in life sciences and medical diagnostics.