Lexagene Holdings (Lexagene Holdings) ROC % : -264.02% (As of Nov. 2022)

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What is Lexagene Holdings 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 %. Lexagene Holdings's annualized return on capital (ROC %) for the quarter that ended in Nov. 2022 was -264.02%.

As of today (2024-06-04), Lexagene Holdings's WACC % is 0.00%. Lexagene Holdings's ROC % is 0.00% (calculated using TTM income statement data). Lexagene Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lexagene Holdings ROC % Historical Data

The historical data trend for Lexagene Holdings'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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Lexagene Holdings ROC % Chart

Lexagene Holdings Annual Data

Trend

Mar13

Mar14

Mar15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

ROC %

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-862.91

-1,052.75

-411.80

-345.21

-366.97

Lexagene Holdings Quarterly Data
	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22
ROC %	Get a 7-Day Free Trial															-318.50	-293.35	-296.62	-316.63	-264.02

Lexagene Holdings ROC % Calculation

Lexagene Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2022 is calculated as:

	ROC % (A: Feb. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2021 )	+	Invested Capital (A: Feb. 2022 ))	/ count )
=	-10.567 * ( 1 - 0% )	/	( (2.855	+	2.904)	/ 2 )
=	-10.567	/	2.8795
=	-366.97 %

where

	Invested Capital		(A: Feb. 2021 )
=	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	))
=	13.195	-	0.716	-	( 9.624	-	max(0, 1.022	-	11.119	+	9.624	))
=	2.855

	Invested Capital		(A: Feb. 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	))
=	8.198	-	0.571	-	( 4.723	-	max(0, 0.923	-	6.573	+	4.723	))
=	2.904

Lexagene Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2022 is calculated as:

	ROC % (Q: Nov. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2022 )	+	Invested Capital (Q: Nov. 2022 ))	/ count )
=	-6.644 * ( 1 - 0% )	/	( (2.466	+	2.567)	/ 2 )
=	-6.644	/	2.5165
=	-264.02 %

where

	Invested Capital		(Q: Aug. 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	))
=	4.195	-	0.64	-	( 1.089	-	max(0, 0.986	-	2.872	+	1.089	))
=	2.466

	Invested Capital		(Q: Nov. 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	))
=	3.49	-	0.459	-	( 0.464	-	max(0, 1.655	-	2.296	+	0.464	))
=	2.567

Note: The Operating Income data used here is four times the quarterly (Nov. 2022) data.

Lexagene Holdings (OTCPK:LXXGQ) 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, Lexagene Holdings's WACC % is 0.00%. Lexagene Holdings's ROC % is 0.00% (calculated using TTM income statement data). Lexagene Holdings 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.

Lexagene Holdings ROC % Related Terms

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Lexagene Holdings (Lexagene Holdings) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Lexagene Holdings Inc (OTCPK:LXXGQ) » Definitions » ROC %

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Address

500 Cummings Center, Suite 4550, Beverly, MA, USA, 01915

Website

https://www.lexagene.com

Lexagene Holdings Inc is a molecular diagnostics company that develops molecular diagnostic systems for pathogen detection and genetic testing for other molecular markers for on-site rapid testing in veterinary diagnostics, and for use in open-access markets such as food and water safety, clinical research, agricultural testing and biodefense. The MiQLab system delivers sensitivity, specificity, and breadth of detection and can return results in approximately two hours. The unique open-access feature is designed for custom testing so that end-users can load their own real-time PCR assays onto the instrument to target any genetic target of interest.