Centogene NV (Centogene NV) ROC % : 0.00% (As of Jun. 2023)

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What is Centogene NV 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 %. Centogene NV's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 0.00%.

As of today (2024-04-29), Centogene NV's WACC % is 0.52%. Centogene NV's ROC % is -42.24% (calculated using TTM income statement data). Centogene NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Centogene NV ROC % Historical Data

The historical data trend for Centogene NV'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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Centogene NV ROC % Chart

Centogene NV Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-14.58

-26.72

-76.37

-72.79

-57.45

Centogene NV Quarterly Data
	Dec17	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial															-128.43	-61.50	-80.62	-	-

Centogene NV ROC % Calculation

Centogene NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-38.683 * ( 1 - -0.28% )	/	( (77.426	+	57.625)	/ 2 )
=	-38.7913124	/	67.5255
=	-57.45 %

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	))
=	102.979	-	12.915	-	( 15.119	-	max(0, 44.539	-	57.177	+	15.119	))
=	77.426

	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	))
=	98.318	-	6.786	-	( 33.907	-	max(0, 26.128	-	63.381	+	33.907	))
=	57.625

Centogene NV's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (57.625	+	57.252)	/ 2 )
=	0	/	57.4385
=	0.00 %

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	))
=	98.318	-	6.786	-	( 33.907	-	max(0, 26.128	-	63.381	+	33.907	))
=	57.625

	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	))
=	77.889	-	7.626	-	( 15.334	-	max(0, 29.146	-	42.157	+	15.334	))
=	57.252

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

Centogene NV (NAS:CNTG) 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, Centogene NV's WACC % is 0.52%. Centogene NV's ROC % is -42.24% (calculated using TTM income statement data). Centogene NV 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.

Centogene NV ROC % Related Terms

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Centogene NV (Centogene NV) Business Description

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39K:Germany

Address

Am Strande 7, Rostock, MV, DEU, 18055

Website

https://www.centogene.com

Centogene NV is a United States-based company focused on transforming clinical and genetic data into actionable information for patients, physicians, and pharmaceutical companies. The company operates in three segments: pharmaceutical, diagnostics, and COVID-19. Its pharmaceutical segment provides a variety of services to its pharmaceutical partners, including early patient recruitment and identification, epidemiological insights, biomarker discovery, and patient monitoring. Its clinical diagnostics segment provides targeted genetic sequencing and diagnostics services to patients.