Abeona Therapeutics (Abeona Therapeutics) ROC % : -410.39% (As of Dec. 2023)

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What is Abeona Therapeutics 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 %. Abeona Therapeutics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -410.39%.

As of today (2024-04-27), Abeona Therapeutics's WACC % is 11.70%. Abeona Therapeutics's ROC % is -356.96% (calculated using TTM income statement data). Abeona Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Abeona Therapeutics ROC % Historical Data

The historical data trend for Abeona Therapeutics'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.

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Abeona Therapeutics ROC % Chart

Abeona Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-86.22

-65.20

-138.25

-211.05

-336.63

Abeona Therapeutics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-291.89	-331.88	-356.40	-354.95	-410.39

Abeona Therapeutics ROC % Calculation

Abeona Therapeutics'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 )
=	-48.2 * ( 1 - 0% )	/	( (15.685	+	12.952)	/ 2 )
=	-48.2	/	14.3185
=	-336.63 %

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	))
=	64.214	-	3.209	-	( 52.149	-	max(0, 7.779	-	53.099	+	52.149	))
=	15.685

	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	))
=	64.002	-	8.735	-	( 52.226	-	max(0, 13.422	-	55.737	+	52.226	))
=	12.952

Abeona Therapeutics's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-52.836 * ( 1 - 0% )	/	( (12.797	+	12.952)	/ 2 )
=	-52.836	/	12.8745
=	-410.39 %

where

	Invested Capital		(Q: Sep. 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	))
=	66.087	-	4.438	-	( 53.754	-	max(0, 8.412	-	57.264	+	53.754	))
=	12.797

	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	))
=	64.002	-	8.735	-	( 52.226	-	max(0, 13.422	-	55.737	+	52.226	))
=	12.952

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Abeona Therapeutics (NAS:ABEO) 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, Abeona Therapeutics's WACC % is 11.70%. Abeona Therapeutics's ROC % is -356.96% (calculated using TTM income statement data). Abeona Therapeutics 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.

Abeona Therapeutics ROC % Related Terms

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Abeona Therapeutics (Abeona Therapeutics) Business Description

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Address

1330 Avenue of the Americas, 33rd Floor, New York, NY, USA, 10019

Website

https://www.abeonatherapeutics.com

Abeona Therapeutics Inc is a clinical-stage biopharmaceutical company. The firm is focused on developing gene therapies and plasma-based products for life-threatening rare genetic diseases. Its lead clinical programs consist of EB-101, autologous, gene-corrected cell therapy for recessive dystrophic epidermolysis bullosa; ABO-102, adeno-associated virus-based gene therapy for Sanfilippo syndrome type A, and ABO-101, an AAV-based gene therapy for Sanfilippo syndrome type B.

Executives

Mark Alvino	director	C/O SCO SECURITIES LLC, 1285 AVENUE OF THE AMERICAS 35TH FLOOR, NEW YORK NY 10019
Michael Amoroso	officer: Chief Operating Officer	1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Faith L. Charles	director	ABEONA THERAPEUTICS INC., 1330 AVENUE OF THE AMERICAS - FLOOR 33, NEW YORK NY 10019
Vishwas Seshadri	director, officer: Chief Executive Officer	64 STRYKER COURT, BRIDGEWATER NJ 08807
Leila Alland	director	C/O PMV PHARMACEUTICALS, INC., 8 CLARKE DRIVE, SUITE 3, CRANBURY NJ 08512
Christine Berni Silverstein	officer: Chief Financial Officer	C/O ABEONA THERAPEUTICS INC., 1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Joseph Walter Vazzano	officer: Chief Financial Officer	1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Brendan M. O'malley	officer: SVP, General Counsel	1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Adage Capital Partners, L.p.	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Adage Capital Management, L.p.	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Adage Capital Partners Gp, L.l.c.	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Robert Atchinson	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Phillip Gross	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Edward Carr	officer: Vice President, Controller	1330 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Todd Wider	director	4848 LEMMON AVENUE, SUITE 517, DALLAS TX 75219