Apollon Formularies (AQSE:APOL) ROC % : -27.41% (As of Jun. 2023)

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What is Apollon Formularies 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 %. Apollon Formularies's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -27.41%.

As of today (2024-06-06), Apollon Formularies's WACC % is 3.30%. Apollon Formularies's ROC % is -13.71% (calculated using TTM income statement data). Apollon Formularies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Apollon Formularies ROC % Historical Data

The historical data trend for Apollon Formularies'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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Apollon Formularies ROC % Chart

Apollon Formularies Annual Data

Trend

Jun10

Jun11

Dec12

Dec13

Dec14

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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-6.04

-18.93

-14.92

-3.96

-30.34

Apollon Formularies Semi-Annual Data
	Jun11	Jun12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec17	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Jun23
ROC %	Get a 7-Day Free Trial											-3.63	-28.12	-33.02	-25.83	-27.41

Apollon Formularies ROC % Calculation

Apollon Formularies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-0.762 * ( 1 - 0% )	/	( (2.314	+	2.709)	/ 2 )
=	-0.762	/	2.5115
=	-30.34 %

where

	Invested Capital		(A: Dec. 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	))
=	2.401	-	0.085	-	( 0.002	-	max(0, 0.085	-	0.243	+	0.002	))
=	2.314

	Invested Capital		(A: Dec. 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	))
=	3.046	-	0.032	-	( 0.305	-	max(0, 0.083	-	0.666	+	0.305	))
=	2.709

Apollon Formularies's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.806 * ( 1 - 0% )	/	( (3.036	+	2.845)	/ 2 )
=	-0.806	/	2.9405
=	-27.41 %

where

	Invested Capital		(Q: Jun. 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	))
=	3.658	-	0.619	-	( 0.003	-	max(0, 0.619	-	0.648	+	0.003	))
=	3.036

	Invested Capital		(Q: Jun. 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	))
=	3.957	-	1.842	-	( 0.051	-	max(0, 1.842	-	1.112	+	0.051	))
=	2.845

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Apollon Formularies (AQSE:APOL) 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, Apollon Formularies's WACC % is 3.30%. Apollon Formularies's ROC % is -13.71% (calculated using TTM income statement data). Apollon Formularies 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.

Apollon Formularies ROC % Related Terms

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Apollon Formularies (AQSE:APOL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Apollon Formularies PLC (AQSE:APOL) » Definitions » ROC %

Comparable Companies

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Address

6 Hope Street, Quayside House, Castletown, IMN, IM9 1AS

Website

https://www.apollon.org.uk

Apollon Formularies PLC is a London, England and Jamaican based medical cannabis pharmaceutical company specialising in research and treatment of patients with cancer and chronic pain. It is engaged in investing by seeking to acquire a direct and/or indirect interest in projects and assets in the agriculture and logistics sectors and the medicinal cannabis sector. The company focus on opportunities in Africa and Europe. It has created proprietary hybrid medical cannabis pharmaceutical strains, technology, formulations, and treatment products.