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IGM Biosciences (IGM Biosciences) ROC % : -265.46% (As of Dec. 2023)


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What is IGM 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 %. IGM Biosciences's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -265.46%.

As of today (2024-05-02), IGM Biosciences's WACC % is 10.64%. IGM Biosciences's ROC % is -272.08% (calculated using TTM income statement data). IGM Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.


IGM Biosciences ROC % Historical Data

The historical data trend for IGM 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.

IGM Biosciences ROC % Chart

IGM Biosciences Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -213.65 -214.32 -299.50 -281.43 -273.07

IGM Biosciences Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -259.37 -267.29 -281.88 -272.74 -265.46

IGM Biosciences ROC % Calculation

IGM 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 )
=-263.461 * ( 1 - -0.28% )/( (94.55 + 98.952)/ 2 )
=-264.1986908/96.751
=-273.07 %

where

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))
=423.411 - 19.343 - ( 337.677 - max(0, 42.481 - 347.597+337.677))
=98.952

IGM Biosciences's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-260.476 * ( 1 - -0.4% )/( (98.08 + 98.952)/ 2 )
=-261.517904/98.516
=-265.46 %

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))
=423.411 - 19.343 - ( 337.677 - max(0, 42.481 - 347.597+337.677))
=98.952

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.


IGM Biosciences  (NAS:IGMS) 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, IGM Biosciences's WACC % is 10.64%. IGM Biosciences's ROC % is -272.08% (calculated using TTM income statement data). IGM 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.


IGM Biosciences ROC % Related Terms

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IGM Biosciences (IGM Biosciences) Business Description

Traded in Other Exchanges
Address
325 East Middlefield Road, Mountain View, CA, USA, 94043
IGM Biosciences Inc is a biotechnology company engaged in the development of IgM antibody therapeutics for the treatment of cancer, infectious diseases, and autoimmune and inflammatory diseases. Its IgM antibody technology platform is suited for developing T cell engagers, receptor cross-linking agonists, and targeted cytokines. Its product candidate, IGM-2323, is a bispecific T cell engaging IgM antibody targeting CD20 and CD3 protein, IGM-8444, a combination with a chemotherapeutic agent such as irinotecan, gemcitabine, or venetoclax, and IGM-7354, a bispecific IgM antibody delivering interleukin-15 (IL-15) cytokines to PD-L1 expressing cells for the treatment of patients with solid and hematologic malignancies.
Executives
Baker Bros. Advisors Lp director, 10 percent owner 860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014
Fred Schwarzer director, officer: CEO and President 325 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Bruce Keyt officer: Chief Scientific Officer 325 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Lisa Lynn Decker officer: Chief Business Officer C/O ATRECA INC., 500 SAGINAW DRIVE, REDWOOD CITY CA 94063
George Gauthier officer: Chief Commercial Officer C/O IGM BIOSCIENCES, INC., 325 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Chris H Takimoto officer: Chief Medical Officer C/O IGM BIOSCIENCES, INC., 325 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Misbah Tahir officer: Chief Financial Officer 325 E. MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Thompson Elizabeth H.z. director C/O HORIZON THERAPEUTICS, INC., 2 TOWER PLACE, 12TH FLOOR, SOUTH SAN FRANCISCO CA 94080
Christina Teng Topsoe director, 10 percent owner 325 E MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Jakob Haldor Topsoe director, 10 percent owner 325 E MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Redmile Group, Llc director, 10 percent owner ONE LETTERMAN DRIVE, BUILDING D, SUITE D3-300, SAN FRANCISCO CA 94129
M Kathleen Behrens director 6701 KAISER DRIVE, FREMONT CA 94555
Michael D Loberg director C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Steven Weber officer: Principal Accounting Officer C/O AEGLEA BIOTHERAPEUTICS, INC., 805 LAS CIMAS PARKWAY, SUITE 100, AUSTIN TX 78746
Baker Bros. Advisors (gp) Llc director, 10 percent owner 860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014