GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Shortwave Life Sciences PLC (AQSE:PSY) » Definitions » ROC %

Shortwave Life Sciences (AQSE:PSY) ROC % : 0.00% (As of . 20)


View and export this data going back to 2022. Start your Free Trial

What is Shortwave Life Sciences 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 %. Shortwave Life Sciences's annualized return on capital (ROC %) for the quarter that ended in . 20 was 0.00%.

As of today (2025-03-14), Shortwave Life Sciences's WACC % is 0.00%. Shortwave Life Sciences's ROC % is 0.00% (calculated using TTM income statement data). Shortwave Life Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shortwave Life Sciences ROC % Historical Data

The historical data trend for Shortwave Life Sciences'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.

Shortwave Life Sciences ROC % Chart

Shortwave Life Sciences Annual Data
Trend
ROC %

Shortwave Life Sciences Semi-Annual Data
ROC %

Shortwave Life Sciences ROC % Calculation

Shortwave Life Sciences's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Shortwave Life Sciences's annualized Return on Capital (ROC %) for the quarter that ended in . 20 is calculated as:

ROC % (Q: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: . 20 ) + Invested Capital (Q: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(Q: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(Q: . 20 )
=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))
= - - ( - max(0, - +))
=

Note: The Operating Income data used here is one times the annual (. 20) 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.

Shortwave Life Sciences  (AQSE:PSY) 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, Shortwave Life Sciences's WACC % is 0.00%. Shortwave Life Sciences's ROC % is 0.00% (calculated using TTM income statement data). Shortwave Life Sciences 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.

Shortwave Life Sciences ROC % Related Terms

Thank you for viewing the detailed overview of Shortwave Life Sciences's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Shortwave Life Sciences Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Shortwave Life Sciences PLC (AQSE:PSY) » Definitions » ROC %
Comparable Companies
Traded in Other Exchanges
N/A
Address
17 Hanover Square, London, GBR, W1S 1BN
Website
https://www.shortwavelifesciences.com
Shortwave Life Sciences PLC is a biopharmaceutical company focused in advancing pioneering therapies in mental health care, also it is involved in developing novel drug combinations and delivery methods to treat patients suffering from mental health disorders. It identifies, operates and creates value from early-stage, breakthrough initiatives, with an initial focus on eating disorders.

Shortwave Life Sciences Headlines