GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Enanta Pharmaceuticals Inc (FRA:9EP) » Definitions » ROC %

Enanta Pharmaceuticals (FRA:9EP) ROC % : -82.89% (As of Dec. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Enanta Pharmaceuticals 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 %. Enanta Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -82.89%.

As of today (2025-03-03), Enanta Pharmaceuticals's WACC % is 9.98%. Enanta Pharmaceuticals's ROC % is -97.83% (calculated using TTM income statement data). Enanta Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Enanta Pharmaceuticals ROC % Historical Data

The historical data trend for Enanta 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.

* Premium members only.

Enanta Pharmaceuticals ROC % Chart

Enanta Pharmaceuticals Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -38.96 -66.41 -104.47 -150.05 -122.46

Enanta Pharmaceuticals Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -169.91 -144.60 -77.38 -89.24 -82.89

Enanta Pharmaceuticals ROC % Calculation

Enanta Pharmaceuticals's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

ROC % (A: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2023 ) + Invested Capital (A: Sep. 2024 ))/ count )
=-109.644 * ( 1 - 1.48% )/( (74.805 + 101.619)/ 2 )
=-108.0212688/88.212
=-122.46 %

where

Invested Capital(A: Sep. 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))
=433.152 - 21.023 - ( 346.606 - max(0, 58.831 - 396.155+346.606))
=74.805

Invested Capital(A: 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))
=339.363 - 19.416 - ( 223.616 - max(0, 51.839 - 270.167+223.616))
=101.619

Enanta Pharmaceuticals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-89.936 * ( 1 - 1.83% )/( (101.619 + 111.401)/ 2 )
=-88.2901712/106.51
=-82.89 %

where

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))
=339.363 - 19.416 - ( 223.616 - max(0, 51.839 - 270.167+223.616))
=101.619

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Enanta Pharmaceuticals  (FRA:9EP) 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, Enanta Pharmaceuticals's WACC % is 9.98%. Enanta Pharmaceuticals's ROC % is -97.83% (calculated using TTM income statement data). Enanta 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.


Enanta Pharmaceuticals ROC % Related Terms

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


Enanta Pharmaceuticals Business Description

Traded in Other Exchanges
Address
4 Kingsbury Avenue, Watertown, MA, USA, 02472
Enanta Pharmaceuticals Inc is an American biotechnology company which uses robust, chemistry-driven approach and drug discovery capabilities to focus on the research and development of molecule drugs to cure viral infections and liver diseases. Uses virology and immunology method for curing the diseases. The targeted diseases are hepatitis C, hepatitis B, nonalcoholic steatohepatitis, and the respiratory syncytial virus. The novelty of company research is a specific direct-acting antiviral inhibitor against the hepatitis C virus. The company's inhibitors have been developed in collaboration with AbbVie. AbbVie markets the protease inhibitor, paritaprevir, while other inhibitors are in the pipeline.

Enanta Pharmaceuticals Headlines

No Headlines