ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Allenex AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2016 was 68.80%.
As of today (2024-05-18), Allenex AB's WACC % is 0.00%. Allenex AB's ROC % is 24.74% (calculated using TTM income statement data).
Allenex AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Allenex AB ROC % Historical Data
The historical data trend for Allenex AB'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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2016) 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.
Allenex AB (LTS:0O9J) 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, Allenex AB's WACC % is 0.00%. Allenex AB's ROC % is 24.74% (calculated using TTM income statement data).
Allenex AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Allenex AB ROC % Related Terms
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Allenex AB creates life-science companies in collaboration with innovators. The process requires identifying ideas with commercial potential, and then contributing entrepreneurship and capital. Its portfolio consists of twelve companies, four in drug development and biotechnology, and eight in diagnostics and medical technologies. The company portfolio accounts for more than 50 different projects, some nearing the commercialization phase while others are already selling their products of services, in a wide range of therapeutic areas- from HIV and cancer to eye disease and allergies. Its Drug Development and Biotechnology business area is comprised of four companies: Anamar Medical, IMED, Novahep, and Recopharma. Anamar Medical develops drugs and biomarkers for diagnosing and monitoring/predicting chronic joint diseases such as rheumatoid arthritis and osteoarthritis, with five drug candidates' two biomarkets, and two commercial biomarkers. IMED develops human monoclonal antibodies (MAB) that induce or block natural cell death or apoptosis, and intending to develop antibodies for major therapeutic areas, including HIV, cancer, and transplantation. Novahep, in collaboration with the Karolinska Institute, aims to differentiate cell lines of fetal liver stem cells, which can then be used in the transplantation sector. Recopharma develops mucins for the vaccine market and antimicrobial substances to combat bacteria and viruses that may cause eye infection, influenza, and the Norwalk virus. The companies in the Diagnostics and Medical Technology business area include Absorber, Bioresonator, Biovator, Likvor, Olerup, Olerup SSP, Oncolog, Ortoviva, and Pharmacolog. These companies develop products such as the XM-ONE transplantation test, biomedical sensors, allergic reaction testing technology for the pharmaceutical, cosmetic and chemical industries, a diagnostic instrument to measure cerebrospinal fluid pressure (CSF), tools to facilitate the insertion of artificial discs in spinal surgery, and systems to control the content and concentration of liquid pharmaceutical drugs.
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