EAPH (Easton Pharmaceuticals) ROC %: -3.38% (As of Sep. 2021)


EAPH Easton Pharmaceuticals Inc EAPH
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What is Easton Pharmaceuticals ROC %?

Easton Pharmaceuticals EAPH -95.00% 12 ROC % is -3.38% as of Sep. 2021. GuruFocus rates EAPH with a GF Score™ of 12/100.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Easton Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was -3.38%.

As of today (2026-06-26), Easton Pharmaceuticals's WACC % is 0.00%. Easton Pharmaceuticals's ROC % is 0.00% (calculated using TTM income statement data). Easton Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Easton Pharmaceuticals  (OTCPK:EAPH) 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, Easton Pharmaceuticals's WACC % is 0.00%. Easton Pharmaceuticals's ROC % is 0.00% (calculated using TTM income statement data). Easton Pharmaceuticals 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.

Easton Pharmaceuticals ROC % Related Terms

Easton Pharmaceuticals ROC % Historical Data

* Premium members only.

The historical data trend for Easton Pharmaceuticals'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.

Easton Pharmaceuticals ROC % Chart

Easton Pharmaceuticals Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec18 Dec19 Dec20
ROC %
Get a 7-Day Free Trial -181.32 -445.56 -2.27 -2.39 -1.42

Easton Pharmaceuticals Quarterly Data
Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec18 Dec19 Dec20 Mar21 Jun21 Sep21
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 0.00 0.00 -3.96 -3.24 -3.38
EAPH
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Easton Pharmaceuticals Inc EAPH
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Easton Pharmaceuticals ROC % Calculation

Easton Pharmaceuticals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

ROC % (A: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 ))/ count )
=-0.189 * ( 1 - 0% )/( (16.922 + 9.766)/ 2 )
=-0.189/13.344
=-1.42 %

where

Invested Capital(A: Dec. 2019 )
=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))
=17.172 - 1.455 - ( 0.248 - max(0, 1.455 - 0.25+0.248))
=16.922

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))
=10.192 - 0.621 - ( 0 - max(0, 0.621 - 0.426+0))
=9.766

Easton Pharmaceuticals's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

ROC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=-0.336 * ( 1 - 0% )/( (9.898 + 9.968)/ 2 )
=-0.336/9.933
=-3.38 %

where

Invested Capital(Q: Jun. 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))
=9.898 - 0.157 - ( 0 - max(0, 0.157 - 0+0))
=9.898

Invested Capital(Q: Sep. 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))
=9.968 - 0.233 - ( 0 - max(0, 0.233 - 0+0))
=9.968

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -3.38% mean?
Easton Pharmaceuticals (EAPH) has a ROC % of -3.38% as of Sep. 2021. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Easton Pharmaceuticals and its competitors.
Is Easton Pharmaceuticals' ROC % too high?
Easton Pharmaceuticals' current ROC % is -3.38%. Overall, Easton Pharmaceuticals has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Easton Pharmaceuticals' ROC % compare to FPSUF and GCAN?
Easton Pharmaceuticals' ROC % of -3.38% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Easton Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Easton Pharmaceuticals's current ROC % is -3.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Easton Pharmaceuticals stock overvalued right now?
Easton Pharmaceuticals (EAPH) has a current ROC % of -3.38%. The current ROC % is -3.38%. Easton Pharmaceuticals' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Easton Pharmaceuticals (EAPH), the current ROC % is -3.38% as of Sep. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Easton Pharmaceuticals Business Description

Address 2 Bloor Street East, Suite 3500, Toronto, ON, CAN, M4W 1A8
Easton Pharmaceuticals Inc is a diversified specialty pharmaceutical company. It owns and develops proprietary transdermal delivery technology and therapeutic over the counter products and drugs to treat cancer and other diseases. The company also owns exclusive distribution rights in Mexico and Latin America for patented women's diagnostic and preventative care products. It is focused on the development of product Viorra. The firm's products include Nauseasol, Skin Renou HA, Kenestrin gel, and XILIVE, among others.
12GF Score

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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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