Accelerated Pharma (Accelerated Pharma) ROC % : -40.87% (As of Mar. 2017)

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What is Accelerated Pharma 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 %. Accelerated Pharma's annualized return on capital (ROC %) for the quarter that ended in Mar. 2017 was -40.87%.

As of today (2024-05-20), Accelerated Pharma's WACC % is 0.00%. Accelerated Pharma's ROC % is 0.00% (calculated using TTM income statement data). Accelerated Pharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Accelerated Pharma ROC % Historical Data

The historical data trend for Accelerated Pharma'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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Accelerated Pharma ROC % Chart

Accelerated Pharma Annual Data

Trend

Dec14

Dec15

Dec16

ROC %

-209.49

-89.79

Accelerated Pharma Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
ROC %	Get a 7-Day Free Trial			-182.66	-64.44	-72.12	-49.06	-40.87

Accelerated Pharma ROC % Calculation

Accelerated Pharma's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	-3.202 * ( 1 - 0% )	/	( (3.322	+	3.81)	/ 2 )
=	-3.202	/	3.566
=	-89.79 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	0.766	-	1.969	-	( 0.658	-	max(0, 5.196	-	0.671	+	0.658	))
=	3.322

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	0.147	-	1.611	-	( 0.062	-	max(0, 5.339	-	0.065	+	0.062	))
=	3.81

Accelerated Pharma's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2017 is calculated as:

	ROC % (Q: Mar. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2016 )	+	Invested Capital (Q: Mar. 2017 ))	/ count )
=	-1.64 * ( 1 - 0% )	/	( (3.81	+	4.215)	/ 2 )
=	-1.64	/	4.0125
=	-40.87 %

where

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	0.147	-	1.611	-	( 0.062	-	max(0, 5.339	-	0.065	+	0.062	))
=	3.81

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	0.198	-	1.879	-	( 0.063	-	max(0, 5.961	-	0.065	+	0.063	))
=	4.215

Note: The Operating Income data used here is four times the quarterly (Mar. 2017) data.

Accelerated Pharma (NAS:ACCP) 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, Accelerated Pharma's WACC % is 0.00%. Accelerated Pharma's ROC % is 0.00% (calculated using TTM income statement data). Accelerated Pharma 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.

Accelerated Pharma ROC % Related Terms

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Accelerated Pharma (Accelerated Pharma) Business Description

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Accelerated Pharma Inc, is a Delaware corporation organized on May 12, 2014. It is a biopharmaceutical company focused on utilizing its genomic technology to enhance the development and commercialization of pharmaceutical products. Its lead product candidate is Picoplatin, a new generation platinum-based cancer therapy that has the potential for use in different formulations, as a single agent or in combination with other anti-cancer agents, to treat multiple cancer indications.

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