Precision BioSciences (FRA:PBS0) ROC % : -26.99% (As of Mar. 2024)

View and export this data going back to 2019. Start your Free Trial

What is Precision BioSciences 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 %. Precision BioSciences's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -26.99%.

As of today (2024-05-22), Precision BioSciences's WACC % is 11.11%. Precision BioSciences's ROC % is -60.68% (calculated using TTM income statement data). Precision BioSciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Precision BioSciences ROC % Historical Data

The historical data trend for Precision BioSciences'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.

Precision BioSciences ROC % Chart

Precision BioSciences Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-180.75

-143.10

-49.85

-72.55

-52.08

Precision BioSciences Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-60.53	-57.31	-64.65	-86.66	-26.99

Precision BioSciences ROC % Calculation

Precision BioSciences'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 )
=	-40.106 * ( 1 - 0% )	/	( (90.859	+	63.167)	/ 2 )
=	-40.106	/	77.013
=	-52.08 %

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	))
=	224.832	-	2.341	-	( 178.96	-	max(0, 56.323	-	187.955	+	178.96	))
=	90.859

	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	))
=	146.519	-	4.149	-	( 106.994	-	max(0, 45.838	-	125.041	+	106.994	))
=	63.167

Precision BioSciences's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-15.408 * ( 1 - 0% )	/	( (63.167	+	51.022)	/ 2 )
=	-15.408	/	57.0945
=	-26.99 %

where

	Invested Capital		(Q: 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	))
=	146.519	-	4.149	-	( 106.994	-	max(0, 45.838	-	125.041	+	106.994	))
=	63.167

	Invested Capital		(Q: Mar. 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	))
=	169.962	-	1.649	-	( 126.745	-	max(0, 30.671	-	147.962	+	126.745	))
=	51.022

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

Precision BioSciences (FRA:PBS0) 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, Precision BioSciences's WACC % is 11.11%. Precision BioSciences's ROC % is -60.68% (calculated using TTM income statement data). Precision BioSciences 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.

Precision BioSciences ROC % Related Terms

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

Precision BioSciences (FRA:PBS0) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Precision BioSciences Inc (FRA:PBS0) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

DTIL:USA

Address

302 East Pettigrew Street, Dibrell Building, Suite A-100, Durham, NC, USA, 27701

Website

https://www.precisionbiosciences.com

Precision BioSciences Inc is a genome editing company dedicated to improving life through its genome editing platform, ARCUS. It leverages ARCUS in the development of its product candidates, which are designed to treat human diseases and provide food and agricultural solutions. ARCUS is also unique in its relatively small size which potentially allows delivery to a wider range of cells and tissues using viral and non-viral gene delivery methods.

Precision BioSciences (FRA:PBS0) Headlines

No Headlines