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Homology Medicines (Homology Medicines) ROC % : -151.87% (As of Dec. 2023)


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What is Homology Medicines 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 %. Homology Medicines's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -151.87%.

As of today (2024-04-27), Homology Medicines's WACC % is 1.22%. Homology Medicines's ROC % is -232.80% (calculated using TTM income statement data). Homology Medicines earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Homology Medicines ROC % Historical Data

The historical data trend for Homology Medicines'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.

Homology Medicines ROC % Chart

Homology Medicines Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -235.96 -237.12 -175.91 -101.39 -288.50

Homology Medicines 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -243.30 -209.77 -267.67 -228.81 -151.87

Homology Medicines ROC % Calculation

Homology Medicines'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 )
=-92.102 * ( 1 - 0% )/( (56.125 + 7.723)/ 2 )
=-92.102/31.924
=-288.50 %

where

Homology Medicines'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 )
=-37.656 * ( 1 - 0% )/( (41.866 + 7.723)/ 2 )
=-37.656/24.7945
=-151.87 %

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))
=140.063 - 16.854 - ( 103.298 - max(0, 25.292 - 106.635+103.298))
=41.866

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


Homology Medicines  (NAS:FIXX) 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, Homology Medicines's WACC % is 1.22%. Homology Medicines's ROC % is -232.80% (calculated using TTM income statement data). Homology Medicines 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.


Homology Medicines ROC % Related Terms

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Homology Medicines (Homology Medicines) Business Description

Traded in Other Exchanges
Address
One Patriots Park, Bedford, MA, USA, 01730
Homology Medicines Inc is a United States-based genetic medicines company dedicated to transforming the lives of patients suffering from rare genetic diseases with significant unmet medical needs by curing the underlying cause of the disease. Its proprietary platform is designed to utilize its human hematopoietic stem cell derived adeno-associated virus vectors (AAVHSCs) to deliver genetic medicines in vivo either through a gene therapy or nuclease-free gene editing modality across a range of genetic disorders.
Executives
Paul Alloway officer: See Remarks C/O HOMOLOGY MEDICINES, INC., 45 WIGGINS AVENUE, BEDFORD MA 01730
Albert Seymour officer: Chief Scientific Officer C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Julie Jordan officer: Chief Medical Officer C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Michael Lee Blum officer: Chief Commercial Officer C/O HOMOLOGY MEDICINES, INC., 45 WIGGINS AVENUE, BEDFORD MA 01730
W Bradford Smith officer: CFO, Treasurer & Secretary C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Arthur Tzianabos director, officer: President & CEO C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Timothy P Kelly officer: See Remarks C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Gabriel Cohn officer: Chief Medical Officer C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Kush Parmar director, 10 percent owner C/O 5AM VENTURES, 501 2ND STREET, SUITE 350, SAN FRANCISCO CA 94107
5am Ventures Iv, L.p. 10 percent owner 501 2ND STREET, SUITE 350, SAN FRANCISCO CA 94107
Jeffrey V. Poulton director 300 THIRD STREET, CAMBRIDGE MA 02142
James E Flynn director, 10 percent owner, other: *Director by Deputization 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017
Alise Reicin director C/O CELGENE CORPORATION, 86 MORRIS AVENUE, SUMMIT NJ 07901
Siyamak Rasty officer: Chief Operating Officer C/O HOMOLOGY MEDICINES, INC., ONE PATRIOTS PARK, BEDFORD MA 01730
Vida Ventures, Llc 10 percent owner 40 BROAD STREET, SUITE 201, BOSTON MA 02109

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