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ACLX (Arcellx) ROC % : -47.13% (As of Sep. 2024)


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What is Arcellx 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 %. Arcellx's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -47.13%.

As of today (2024-12-14), Arcellx's WACC % is 10.17%. Arcellx's ROC % is -26.13% (calculated using TTM income statement data). Arcellx earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Arcellx ROC % Historical Data

The historical data trend for Arcellx'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.

Arcellx ROC % Chart

Arcellx Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
-255.86 -372.26 -409.21 -338.66 -58.31

Arcellx Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -72.28 23.03 -24.91 -50.13 -47.13

Arcellx ROC % Calculation

Arcellx'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 )
=-89.88 * ( 1 - -0.95% )/( (91.393 + 219.829)/ 2 )
=-90.73386/155.611
=-58.31 %

where

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))
=313.817 - 12.254 - ( 254.835 - max(0, 56.693 - 266.863+254.835))
=91.393

Invested Capital(A: Dec. 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))
=825.132 - 7.178 - ( 702.017 - max(0, 118.238 - 716.363+702.017))
=219.829

Arcellx's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-134.464 * ( 1 - -0.87% )/( (277.55 + 297.992)/ 2 )
=-135.6338368/287.771
=-47.13 %

where

Invested Capital(Q: Sep. 2024 )
=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))
=764.909 - 16.633 - ( 574.254 - max(0, 137.017 - 587.301+574.254))
=297.992

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Arcellx  (NAS:ACLX) 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, Arcellx's WACC % is 10.17%. Arcellx's ROC % is -26.13% (calculated using TTM income statement data). Arcellx 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.


Arcellx ROC % Related Terms

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Arcellx Business Description

Traded in Other Exchanges
N/A
Address
800 Bridge Parkway, Suite A, Redwood, CA, USA, 94065
Arcellx Inc is a clinical-stage biotechnology company reimagining cell therapy through the development of immunotherapies for patients with cancer and other incurable diseases.
Executives
Kavita Patel director C/O TESARO, INC., 1000 WINTER STREET, SUITE 3300, WALTHAM MA 02451
Michelle Gilson officer: Chief Financial Officer 25 WEST WATKINS MILL ROAD, SUITE A, GAITHERSBURG MD 20878
Christopher Heery officer: Chief Medical Officer C/O PRECISION BIOSCIENCES, INC., 302 E. PETTIGREW STREET, SUITE A-100, DURHAM NC 27701
Olivia C Ware director 11726 SAN VICENTE BLVD, SUITE 650, LOS ANGELES CA 90049
Rami Elghandour director, officer: See Remarks 15 BARCELONA CIR, REDWOOD CITY CA 94065
Jill Carroll director C/O APPLIED GENETIC TECHNOLOGIES CORP., 11801 RESEARCH DRIVE, SUITE D, ALACHUA FL 32615
Sr One Capital Fund I Aggregator Lp 10 percent owner C/O DESIGN THERAPEUTICS, INC., 6005 HIDDEN VALLEY ROAD, SUITE 110, CARLSBAD CA 92011
Scott D Sandell 10 percent owner
Forest Baskett 10 percent owner
Mohamad Makhzoumi 10 percent owner 2855 SAND HILL ROAD, MENLO PARK CA 94025
Florence Anthony A. Jr. 10 percent owner 5425 WISCONSIN AVENUE, SUITE 800, CHEVY CHASE MD 20815
New Enterprise Associates 15, L.p. 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Sr One Capital Management, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Sr One Co-invest Ii Manager, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Novo Holdings A/s 10 percent owner TUBORG HAVNEVEJ 19, HELLERUP G7 2900