DYN (Dyne Therapeutics) ROC % : -1,117.92% (As of Sep. 2024)

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What is Dyne Therapeutics 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 %. Dyne Therapeutics's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -1,117.92%.

As of today (2024-12-14), Dyne Therapeutics's WACC % is 12.83%. Dyne Therapeutics's ROC % is -752.66% (calculated using TTM income statement data). Dyne Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dyne Therapeutics ROC % Historical Data

The historical data trend for Dyne Therapeutics'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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Dyne Therapeutics ROC % Chart

Dyne Therapeutics Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-1,546.53

-1,979.98

-583.63

-369.63

-564.69

Dyne Therapeutics 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															-588.16	-659.02	-604.31	-643.47	-1,117.92

Dyne Therapeutics ROC % Calculation

Dyne Therapeutics'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 )
=	-242.162 * ( 1 - 0% )	/	( (45.341	+	40.427)	/ 2 )
=	-242.162	/	42.884
=	-564.69 %

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	))
=	306.325	-	23.478	-	( 256.012	-	max(0, 28.088	-	265.594	+	256.012	))
=	45.341

	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	))
=	165.082	-	46.375	-	( 123.1	-	max(0, 51.095	-	129.375	+	123.1	))
=	40.427

Dyne Therapeutics'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 )
=	-422.636 * ( 1 - 0% )	/	( (38.343	+	37.268)	/ 2 )
=	-422.636	/	37.8055
=	-1,117.92 %

where

	Invested Capital		(Q: Jun. 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	))
=	825.884	-	24.974	-	( 778.838	-	max(0, 29.753	-	792.32	+	778.838	))
=	38.343

	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	))
=	768.844	-	38.446	-	( 723.674	-	max(0, 43.26	-	736.39	+	723.674	))
=	37.268

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

Dyne Therapeutics (NAS:DYN) 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, Dyne Therapeutics's WACC % is 12.83%. Dyne Therapeutics's ROC % is -752.66% (calculated using TTM income statement data). Dyne Therapeutics 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.

Dyne Therapeutics ROC % Related Terms

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Dyne Therapeutics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Dyne Therapeutics Inc (NAS:DYN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1560 Trapelo Road, Waltham, MA, USA, 02451

Website

https://www.dyne-tx.com

Dyne Therapeutics Inc is a biotechnology company focused on providing therapeutics for patients with genetically driven diseases. The company overcomes the limitations of muscle tissue delivery and modern oligonucleotide therapeutics for muscle diseases. The company is developing therapies for muscle disorders like Myotonic dystrophy, Duchenne muscular dystrophy, and Facioscapulohumeral muscular dystrophy. The company's product candidates are DYNE-101 and DYNE-251, both are in the ongoing phase 1/2 clinical trial.

Executives

Dirk Kersten	director, 10 percent owner	C/O FORBION CAPITAL FUND IV COOPERATIEF, GOOMIER 2-35, NAARDEN P7 14111 DC
Richard William Scalzo	officer: See Remarks	25 ALBERTA LANE, HOLLISTON MA 01746
Carlo Incerti	director	FORBION CAPITAL FUND IV COOPERAITEF U.A., GOOMIER 2-35, NAARDEN P7 1411DC
Oxana Beskrovnaya	officer: See Remarks	C/O DYNE THERAPEUTICS, INC., 830 WINTER STREET, WALTHAM MA 02451
Jason P Rhodes	director, 10 percent owner	C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, 4TH FLOOR, CAMBRIDGE MA 02139
Susanna Gatti High	officer: Chief Operating Officer	75 LORIMER ROAD, BELMONT MA 02141
Wildon Farwell	officer: Chief Medical Officer	C/O DYNE THERAPEUTICS, INC., 830 WINTER STREET MA 02451
Jonathan Mcneill	officer: See Remarks	C/O DYNE THERAPEUTICS, INC., 830 WINTER STREET, WALTHAM MA 02451
Joshua T Brumm	director, officer: See Remarks	ZELTIQ AESTHETICS INC., 4698 WILLOW ROAD SUITE 100, PLEASANTON CA 94588
Atlas Venture Opportunity Fund I, L.p.	10 percent owner	400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Fund Xi, L.p.	10 percent owner	400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Associates Opportunity Ii, Lp	10 percent owner	300 TECHNOLOGY SQUARE, 8TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Opportunity Fund Ii, L.p.	10 percent owner	300 TECHNOLOGY SQUARE, 8TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Associates Opportunity Ii, Llc	10 percent owner	300 TECHNOLOGY SQUARE, 8TH FLOOR, CAMBRIDGE MA 02139
Romesh Subramanian	10 percent owner, officer: Chief Scientific Officer	C/O DYNE THERAPEUTICS, INC., 830 WINTER STREET, WALTHAM MA 02451