Gubra AS (FRA:PI3) ROC % : -14.22% (As of Jun. 2024)

View and export this data going back to 2023. Start your Free Trial

What is Gubra AS 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 %. Gubra AS's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -14.22%.

As of today (2024-12-15), Gubra AS's WACC % is 8.08%. Gubra AS's ROC % is -20.80% (calculated using TTM income statement data). Gubra AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gubra AS ROC % Historical Data

The historical data trend for Gubra AS'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.

Gubra AS ROC % Chart

Gubra AS Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

11.12

41.88

-0.48

-13.43

Gubra AS Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-6.40	6.05	-23.81	-19.38	-14.22

Gubra AS ROC % Calculation

Gubra AS'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 )
=	-6.395 * ( 1 - -3.77% )	/	( (23.651	+	75.198)	/ 2 )
=	-6.6360915	/	49.4245
=	-13.43 %

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	))
=	35.339	-	2.02	-	( 9.668	-	max(0, 12.599	-	25.81	+	9.668	))
=	23.651

	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	))
=	83.892	-	1.53	-	( 7.164	-	max(0, 11.282	-	72.723	+	7.164	))
=	75.198

Gubra AS's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-6.984 * ( 1 - 0% )	/	( (75.198	+	22.996)	/ 2 )
=	-6.984	/	49.097
=	-14.22 %

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	))
=	83.892	-	1.53	-	( 7.164	-	max(0, 11.282	-	72.723	+	7.164	))
=	75.198

	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	))
=	81.833	-	1.991	-	( 59.877	-	max(0, 9.109	-	65.955	+	59.877	))
=	22.996

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Gubra AS (FRA:PI3) 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, Gubra AS's WACC % is 8.08%. Gubra AS's ROC % is -20.80% (calculated using TTM income statement data). Gubra AS 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.

Gubra AS ROC % Related Terms

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

Gubra AS Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Gubra AS (FRA:PI3) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GUBRAc:UK GUBRA:Denmark

Address

Horsholm Kongevej 11B, Horsholm, DNK, 2970

Website

https://www.gubra.dk

Gubra AS is a specialized preclinical CRO and biotech company focused on peptide-based drug discovery within metabolic and fibrotic diseases. The company has three segments: Pre-clinical contract research (CRO), which derives maximum revenue; Discovery & Partnerships (D&P) Segment; and Gubra Green Segment.

Gubra AS Headlines

No Headlines