Arecor Therapeutics (LSE:AREC) ROCE % : -68.29% (As of Dec. 2023)

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What is Arecor Therapeutics ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Arecor Therapeutics's annualized ROCE % for the quarter that ended in Dec. 2023 was -68.29%.

Arecor Therapeutics ROCE % Historical Data

The historical data trend for Arecor Therapeutics's ROCE % 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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Arecor Therapeutics ROCE % Chart

Arecor Therapeutics Annual Data

Trend

May17

May18

May19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-101.86

-95.01

-64.31

-56.71

-62.88

Arecor Therapeutics Semi-Annual Data
	May18	May19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial					-39.63	-62.82	-63.43	-60.27	-68.29

Arecor Therapeutics ROCE % Calculation

Arecor Therapeutics's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-8.886	/	( ( (21.765 - 3.728)	+	(15.377 - 5.15) )	/ 2 )
	=	-8.886	/	( (18.037	+	10.227)	/ 2 )
	=	-8.886	/	14.132
	=	-62.88 %

Arecor Therapeutics's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	-8.19	/	( ( (20.129 - 6.37)	+	(15.377 - 5.15) )	/ 2 )
	=	-8.19	/	( ( 13.759	+	10.227 )	/ 2 )
	=	-8.19	/	11.993
	=	-68.29 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Arecor Therapeutics (LSE:AREC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Arecor Therapeutics (LSE:AREC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arecor Therapeutics PLC (LSE:AREC) » Definitions » ROCE %

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6UI:Germany

Address

Chesterford Research Park, Little Chesterford, Saffron Walden, GBR, CB10 1XL

Website

https://www.arecor.com

Arecor Therapeutics PLC is a focused biopharmaceutical company. The company is transforming patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products. By applying an innovative proprietary formulation technology platform, Aresta. It is developing a portfolio of proprietary products in diabetes and other indications and working with pharmaceutical and biotechnology companies to deliver enhanced reformulations of their therapies. Geographically, it operates in the UK, Switzerland, the Rest of Europe, the USA, India, and the Rest of the World, out of which the majority is from the UK.