Lattice Biologics (Lattice Biologics) ROC % : -17.16% (As of Jun. 2021)

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What is Lattice Biologics 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 %. Lattice Biologics's annualized return on capital (ROC %) for the quarter that ended in Jun. 2021 was -17.16%.

As of today (2024-04-29), Lattice Biologics's WACC % is 0.00%. Lattice Biologics's ROC % is 0.00% (calculated using TTM income statement data). Lattice Biologics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lattice Biologics ROC % Historical Data

The historical data trend for Lattice Biologics'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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Lattice Biologics ROC % Chart

Lattice Biologics Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Sep16

Sep17

Sep18

Sep19

Sep20

ROC %

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-64.85

-62.58

-43.54

-17.74

-6.44

Lattice Biologics Quarterly Data
	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21
ROC %	Get a 7-Day Free Trial															-20.05	-1.05	-9.70	-56.43	-17.16

Lattice Biologics ROC % Calculation

Lattice Biologics's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2020 is calculated as:

	ROC % (A: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2019 )	+	Invested Capital (A: Sep. 2020 ))	/ count )
=	-0.264 * ( 1 - 0% )	/	( (3.463	+	4.737)	/ 2 )
=	-0.264	/	4.1
=	-6.44 %

where

	Invested Capital		(A: Sep. 2019 )
=	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	))
=	2.275	-	5.459	-	( 0.016	-	max(0, 7.685	-	1.038	+	0.016	))
=	3.463

	Invested Capital		(A: Sep. 2020 )
=	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	))
=	3.018	-	5.211	-	( 0.057	-	max(0, 7.832	-	0.902	+	0.057	))
=	4.737

Lattice Biologics's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2021 is calculated as:

	ROC % (Q: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2021 )	+	Invested Capital (Q: Jun. 2021 ))	/ count )
=	-0.104 * ( 1 - 0% )	/	( (0.606	+	0.606)	/ 2 )
=	-0.104	/	0.606
=	-17.16 %

where

	Invested Capital		(Q: Mar. 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	))
=	0.632	-	1.526	-	( 0.026	-	max(0, 1.526	-	0.026	+	0.026	))
=	0.606

	Invested Capital		(Q: Jun. 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	))
=	0.606	-	0.506	-	( 0	-	max(0, 0.506	-	0	+	0	))
=	0.606

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) data.

Lattice Biologics (OTCPK:LBLTF) 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, Lattice Biologics's WACC % is 0.00%. Lattice Biologics's ROC % is 0.00% (calculated using TTM income statement data). Lattice Biologics 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.

Lattice Biologics ROC % Related Terms

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Lattice Biologics (Lattice Biologics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Lattice Biologics Ltd (OTCPK:LBLTF) » Definitions » ROC %

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Address

512 East Madison Avenue, Suite A1, Belgrade, MT, USA, 59714

Website

http://www.latticebiologics.com

Lattice Biologics Ltd is a biologic product manufacturing company. It manufactures and markets biologic products to domestic and international markets. The products of the company include ADM dermis, DBM Putty, Bone scaffold, and Others, of which key revenue is derived from Bone scaffold. The biologic products are used in various applications such as enhancing fusion in spine surgery, enhancing breast reconstruction post mastectomy for breast cancer patients, sports medicine applications, promotion of bone in foot and ankle surgery, promotion of skull healing following neurosurgery, and subchondral bone defect repair in knee and other joint surgeries. The company generates its revenue from operations principally carried in the United States of America.

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