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Aprinoia Therapeutics (Aprinoia Therapeutics) ROIC % : -89.25% (As of Jun. 2023)


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What is Aprinoia Therapeutics 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 %. Aprinoia Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -89.25%.

As of today (2024-04-30), Aprinoia Therapeutics's WACC % is 0.00%. Aprinoia Therapeutics's ROIC % is 0.00% (calculated using TTM income statement data). Aprinoia Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aprinoia Therapeutics ROIC % Historical Data

The historical data trend for Aprinoia Therapeutics'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.

* Premium members only.

Aprinoia Therapeutics ROIC % Chart

Aprinoia Therapeutics Annual Data
Trend Dec21 Dec22
ROIC %
-664.17 -531.15

Aprinoia Therapeutics Semi-Annual Data
Dec21 Jun22 Dec22 Jun23
ROIC % - -769.79 -409.38 -89.25

Competitive Comparison of Aprinoia Therapeutics's ROIC %

For the Biotechnology subindustry, Aprinoia Therapeutics'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.

Aprinoia Therapeutics's ROIC % Distribution in the Biotechnology Industry

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

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


Aprinoia Therapeutics ROIC % Calculation

Aprinoia Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-28.264 * ( 1 - -0.06% )/( (3.598 + 7.051)/ 2 )
=-28.2809584/5.3245
=-531.15 %

where

Invested Capital(A: Dec. 2021 )
=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))
=12.766 - 3.274 - ( 9.674 - max(0, 4.364 - 10.258+9.674))
=3.598

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))
=5.643 - 11.956 - ( 1.221 - max(0, 15.175 - 1.811+1.221))
=7.051

Aprinoia Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

ROIC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=-13.474 * ( 1 - -0.74% )/( (7.051 + 23.367)/ 2 )
=-13.5737076/15.209
=-89.25 %

where

Invested Capital(Q: 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))
=5.643 - 11.956 - ( 1.221 - max(0, 15.175 - 1.811+1.221))
=7.051

Invested Capital(Q: Jun. 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))
=14.476 - 12.073 - ( 7.731 - max(0, 30.517 - 9.553+7.731))
=23.367

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

* 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.

Aprinoia Therapeutics  (NAS:APRI) 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, Aprinoia Therapeutics's WACC % is 0.00%. Aprinoia Therapeutics'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.

Aprinoia Therapeutics ROIC % Related Terms

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Aprinoia Therapeutics (Aprinoia Therapeutics) Business Description

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Aprinoia Therapeutics Inc is a clinical-stage biotechnology company. It is engaged in protecting patients' brain health and changing clinical outcomes for a broad range of neurodegenerative diseases by developing novel, highly sensitive and selective diagnostic tools and novel therapeutics. Neurodegenerative diseases are relentless and largely fatal, resulting from progressive loss of nerve cells in the brain and, depending on the specific disorders, can affect a broad range of cognitive, behavioral, and motor functions, such as memory, thinking, speaking, walking, and breathing. It is developing several different diagnostic and therapeutic platforms such as abnormal protein aggregates of tau and alpha synuclein ("?-Syn") that are toxic to brain cells.

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