Ra Pharmaceuticals (Ra Pharmaceuticals) ROC % : -1,455.83% (As of Dec. 2019)

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What is Ra Pharmaceuticals 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 %. Ra Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was -1,455.83%.

As of today (2024-04-26), Ra Pharmaceuticals's WACC % is 0.00%. Ra Pharmaceuticals's ROC % is 0.00% (calculated using TTM income statement data). Ra Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ra Pharmaceuticals ROC % Historical Data

The historical data trend for Ra Pharmaceuticals'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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Ra Pharmaceuticals ROC % Chart

Ra Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC %

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-202.59

-347.48

-720.62

-888.40

-1,167.00

Ra Pharmaceuticals Quarterly Data
	Dec14	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
ROC %	Get a 7-Day Free Trial														-899.33	-900.60	-861.74	-1,027.98	-1,455.83

Ra Pharmaceuticals ROC % Calculation

Ra Pharmaceuticals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2019 is calculated as:

	ROC % (A: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2018 )	+	Invested Capital (A: Dec. 2019 ))	/ count )
=	-106.979 * ( 1 - 0% )	/	( (7.292	+	11.042)	/ 2 )
=	-106.979	/	9.167
=	-1,167.00 %

where

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	219.22	-	9.722	-	( 209.822	-	max(0, 10.201	-	212.407	+	209.822	))
=	7.292

	Invested Capital		(A: Dec. 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	))
=	284.152	-	16.995	-	( 264.992	-	max(0, 18.579	-	274.694	+	264.992	))
=	11.042

Ra Pharmaceuticals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-151.312 * ( 1 - 0% )	/	( (9.745	+	11.042)	/ 2 )
=	-151.312	/	10.3935
=	-1,455.83 %

where

	Invested Capital		(Q: 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	))
=	308.938	-	10.679	-	( 292.602	-	max(0, 11.666	-	300.18	+	292.602	))
=	9.745

	Invested Capital		(Q: Dec. 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	))
=	284.152	-	16.995	-	( 264.992	-	max(0, 18.579	-	274.694	+	264.992	))
=	11.042

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.

Ra Pharmaceuticals (NAS:RARX) 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, Ra Pharmaceuticals's WACC % is 0.00%. Ra Pharmaceuticals's ROC % is 0.00% (calculated using TTM income statement data). Ra Pharmaceuticals 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.

Ra Pharmaceuticals ROC % Related Terms

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Ra Pharmaceuticals (Ra Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Ra Pharmaceuticals Inc (NAS:RARX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

87 Cambridge Park Drive, Cambridge, MA, USA, 02140

Website

http://www.rapharma.com

Ra Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. It discovers and develops therapeutics for the treatment of diseases caused by excessive or uncontrolled activation of the complement system. Geographically business of the firm can be seen amplifying in the United States, Europe and even at international level.

Executives

Peter Kolchinsky	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Edward T Mathers	director	C/O MEDIMMUNE, INC., ONE MEDIMMUNE WAY, GAITHERSBURG MD 20878
Timothy R Pearson	director	C/O TESARO, INC., 1000 WINTER STREET, SUITE 3300, WALTHAM MA 02451
Aoife Brennan	director	200 SIDNEY STREET, SUITE 320, C/O SYNLOGIC, INC., CAMBRIDGE MA 02139
Douglas A Treco	director, officer: President and CEO	87 CAMBRIDGEPARK DRIVE, C/O RA PHARMACEUTICALS, INC., CAMBRIDGE MA 02140
Nea Partners 13, Limited Partnership	10 percent owner	1119 ST. PAUL STREET, BALTIMORE MD 21202
Nea 13 Gp, Ltd	10 percent owner	1119 ST. PAUL STREET, BALTIMORE MD 21202
New Enterprise Associates 13 Lp	10 percent owner	1119 ST PAUL STREET, BALTIMORE MD 21202
Rajeev M. Shah	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Alexander Cumbo	director	215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142
Robert Heft	director	87 CAMBRIDGEPARK DRIVE, C/O RA PHARMACEUTICALS, INC., CAMBRIDGE MA 02140
Patrick J Kerins	10 percent owner
Ra Capital Management, L.p.	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Healthcare Fund Lp	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
David Charles Lubner	officer: Executive VP and CFO	C/O TETRAPHASE PHARMACEUTICALS, INC., 480 ARSENAL STREET, SUITE 110, WATERTOWN MA 02472