Assembly Biosciences (FRA:V7B) ROC % : -108.35% (As of Sep. 2024)

View and export this data going back to 2014. Start your Free Trial

What is Assembly 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 %. Assembly Biosciences's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -108.35%.

As of today (2024-12-12), Assembly Biosciences's WACC % is 9.81%. Assembly Biosciences's ROC % is -142.05% (calculated using TTM income statement data). Assembly Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Assembly Biosciences ROC % Historical Data

The historical data trend for Assembly 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.

Assembly Biosciences ROC % Chart

Assembly Biosciences Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-161.25

-87.50

-161.37

-324.82

-233.08

Assembly Biosciences 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															-827.10	-212.64	-108.82	-130.69	-108.35

Assembly Biosciences ROC % Calculation

Assembly 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 )
=	-59.28 * ( 1 - -0.05% )	/	( (13.611	+	37.28)	/ 2 )
=	-59.30964	/	25.4455
=	-233.08 %

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	))
=	96.094	-	6.329	-	( 86.48	-	max(0, 15.383	-	91.537	+	86.48	))
=	13.611

	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	))
=	125.467	-	1.473	-	( 119.436	-	max(0, 35.969	-	122.683	+	119.436	))
=	37.28

Assembly Biosciences'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 )
=	-39.484 * ( 1 - 0% )	/	( (36.731	+	36.15)	/ 2 )
=	-39.484	/	36.4405
=	-108.35 %

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	))
=	107.135	-	3.835	-	( 101.464	-	max(0, 38.344	-	104.913	+	101.464	))
=	36.731

	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	))
=	90.336	-	3.209	-	( 85.554	-	max(0, 37.513	-	88.49	+	85.554	))
=	36.15

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

Assembly Biosciences (FRA:V7B) 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, Assembly Biosciences's WACC % is 9.81%. Assembly Biosciences's ROC % is -142.05% (calculated using TTM income statement data). Assembly 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.

Assembly Biosciences ROC % Related Terms

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

Assembly Biosciences Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Assembly Biosciences Inc (FRA:V7B) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

ASMB:USA

Address

Two Tower Place, 7th Floor, South San Francisco, CA, USA, 94080

Website

https://www.assemblybio.com

Assembly Biosciences Inc is a clinical-stage biotechnology company. It is advancing two innovative platform programs, a novel class of oral therapeutics for the treatment of hepatitis B virus (HBV) infection and novel class of oral synthetic live biotherapeutics, which are designed to restore health to a dysbiotic microbiome. The company's HBV-cure program is aimed at increasing the current low cure rate for patients with HBV and is pursuing multiple drug candidates that inhibit multiple steps of the HBV lifecycle. Assembly has discovered several novel core protein Allosteric Modulators, which are small molecules that directly target and allosterically modulate the HBV core protein. The majority of the revenue is generated from the HBV cure program.

Assembly Biosciences Headlines

No Headlines