GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arvinas Inc (NAS:ARVN) » Definitions » ROC %

ARVN (Arvinas) ROC % : -89.52% (As of Sep. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Arvinas 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 %. Arvinas's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -89.52%.

As of today (2024-12-14), Arvinas's WACC % is 15.63%. Arvinas's ROC % is -147.05% (calculated using TTM income statement data). Arvinas earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Arvinas ROC % Historical Data

The historical data trend for Arvinas'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.

Arvinas ROC % Chart

Arvinas Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -180.55 -288.57 -127.60 -110.41 -166.77

Arvinas Quarterly Data
Dec19 Mar20 Jun20 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 Premium Member Only Premium Member Only -109.52 -276.46 -162.21 -77.36 -89.52

Arvinas ROC % Calculation

Arvinas'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 )
=-401.5 * ( 1 - -0.25% )/( (267.7 + 215)/ 2 )
=-402.50375/241.35
=-166.77 %

where

Arvinas'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 )
=-241.2 * ( 1 - -1.23% )/( (308 + 237.5)/ 2 )
=-244.16676/272.75
=-89.52 %

where

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.


Arvinas  (NAS:ARVN) 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, Arvinas's WACC % is 15.63%. Arvinas's ROC % is -147.05% (calculated using TTM income statement data). Arvinas 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.


Arvinas ROC % Related Terms

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


Arvinas Business Description

Traded in Other Exchanges
N/A
Address
395 Winchester Avenue, 5 Science Park, New Haven, CT, USA, 06511
Arvinas Inc is a United States-based biopharmaceutical company focused on improving the lives of patients suffering from debilitating and life-threatening diseases through the discovery, development and commercialization of therapies that degrade disease-causing proteins.. The company's proprietary Proteolysis-Targeting Chimera (PROTAC), work by inducing the cell's own ubiquitin-proteasome system to target, degrade and remove disease-causing proteins. The group's product candidates are bavdegalutamide, ARV-471 and ARV-766.
Executives
David K Loomis officer: Chief Accounting Officer C/O 5 SCIENCE PARK, 385 WINCHESTER AVENUE, NEW HAVEN CT 06511
Ian Taylor officer: Senior Vice President, Biology C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVENUE, NEW HAVEN CT 0651
John G Houston director, officer: President and CEO C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVE., NEW HAVEN CT 06511
Sean A Cassidy officer: Chief Financial Officer 322 EAST MAIN STREET, BRANFORD CT 06405
Ronald Peck officer: Chief Medical Officer C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVE., NEW HAVEN CT 06511
Sunil Agarwal director 60 LEVERONI COURT, NOVATO CA 94949
Everett Cunningham director C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
John D Young director C/O CORPORATE SECRETARY, 235 EAST 42ND ST., NEW YORK NY 10017
Briggs Morrison director C/O SYNDAX PHARMACEUTICALS, INC., 400 TOTTEN POND ROAD, SUITE 110, WALTHAM MA 02451
Liam Ratcliffe director, 10 percent owner C/O ACCESS INDUSTRIES, INC, 40 WEST 57TH ST, 28TH FLOOR, NEW YORK NY 10019
Timothy M Shannon director C/O CURAGEN CORP, 555LONG WHARF DR. 11TH FL., NEW HAVEN CT 06511
Bradley Albert Margus director C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVE., NEW HAVEN CT 06511
Kennedy Edward Moore Jr. director C/O ARVINAS, INC. 5 SCIENCE PARK, 395 WINCHESTER AVENUE, NEW HAVEN CT 06511
Wendy L Dixon director
Linda Bain director C/O BLUEBIRD BIO, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139