3D Medicines (HKSE:01244) ROC % : -17.65% (As of Jun. 2024)

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What is 3D Medicines 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 %. 3D Medicines's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -17.65%.

As of today (2024-10-31), 3D Medicines's WACC % is 8.01%. 3D Medicines's ROC % is -70.76% (calculated using TTM income statement data). 3D Medicines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

3D Medicines ROC % Historical Data

The historical data trend for 3D Medicines'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.

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3D Medicines ROC % Chart

3D Medicines Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-95.20

-27.55

-15.53

-71.52

3D Medicines Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-9.55	-65.52	-55.55	-110.70	-17.65

3D Medicines ROC % Calculation

3D Medicines'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 )
=	-460.905 * ( 1 - -0.01% )	/	( (527.197	+	761.824)	/ 2 )
=	-460.9510905	/	644.5105
=	-71.52 %

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	))
=	1487.534	-	104.03	-	( 1051.977	-	max(0, 420.163	-	1276.47	+	1051.977	))
=	527.197

	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	))
=	1562.881	-	150.496	-	( 1090.035	-	max(0, 547.295	-	1197.856	+	1090.035	))
=	761.824

3D Medicines'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 )
=	-105.044 * ( 1 - 0% )	/	( (761.824	+	428.483)	/ 2 )
=	-105.044	/	595.1535
=	-17.65 %

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	))
=	1562.881	-	150.496	-	( 1090.035	-	max(0, 547.295	-	1197.856	+	1090.035	))
=	761.824

	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	))
=	1360.25	-	248.056	-	( 967.359	-	max(0, 432.667	-	1116.378	+	967.359	))
=	428.483

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

3D Medicines (HKSE:01244) 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, 3D Medicines's WACC % is 8.01%. 3D Medicines's ROC % is -70.76% (calculated using TTM income statement data). 3D Medicines 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.

3D Medicines ROC % Related Terms

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3D Medicines Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » 3D Medicines Inc (HKSE:01244) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 3 and No. 5, Laiyang Road, Shandong, Qingdao, CHN

Website

https://www.3d-medicines.com

3D Medicines Inc is a commercial-stage biopharmaceutical company that researches, develops, and commercialization drugs in the field of managing cancer as a chronic disease. It develops differentiated immuno-oncology drugs, helping cancer patients live with prolonged survival time and quality of life. It generates all of its revenue from China.

Executives

Gong Zhaolong	2101 Beneficial owner
Zhu Pai	2101 Beneficial owner
Dragon Prosper Holdings Limited	2101 Beneficial owner
Simcere Pharmaceutical Group Limited	2101 Beneficial owner
Gong Zhaolong	2501 Other
Immunal Medixin Us Limited	2101 Beneficial owner
Kastle Limited
Shanghai Zhenlu Enterprise Management Consulting Partnership (limited Partnership)	2101 Beneficial owner
Shenzhen Efung Holding Co., Ltd.	2201 Interest of corporation controlled by you
Shenzhen Efung Investment Management Enterprise (l.p.)	2201 Interest of corporation controlled by you
Shenzhen Efung Ruishi Investment Enterprise (limited Partnership)	2201 Interest of corporation controlled by you
Zhu Jinqiao	2103 Interests held jointly with another person

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