Mapi - Pharma (Mapi - Pharma) ROC % : -58.75% (As of Jun. 2015)

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What is Mapi - Pharma 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 %. Mapi - Pharma's annualized return on capital (ROC %) for the quarter that ended in Jun. 2015 was -58.75%.

As of today (2024-05-30), Mapi - Pharma's WACC % is 0.00%. Mapi - Pharma's ROC % is 0.00% (calculated using TTM income statement data). Mapi - Pharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mapi - Pharma ROC % Historical Data

The historical data trend for Mapi - Pharma'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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Mapi - Pharma ROC % Chart

Mapi - Pharma Annual Data

Trend

Dec12

Dec13

Dec14

ROC %

-53.33

-44.76

-66.62

Mapi - Pharma Semi-Annual Data
	Dec12	Dec13	Jun14	Dec14	Jun15
ROC %	-	-	-59.79	-73.85	-58.75

Mapi - Pharma ROC % Calculation

Mapi - Pharma's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	-7.02 * ( 1 - -0.33% )	/	( (10.867	+	10.276)	/ 2 )
=	-7.043166	/	10.5715
=	-66.62 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	16.136	-	1.456	-	( 8.484	-	max(0, 5.707	-	9.52	+	8.484	))
=	10.867

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	9.858	-	0.494	-	( 2.326	-	max(0, 4.263	-	3.351	+	2.326	))
=	10.276

Mapi - Pharma's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2014 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	-4.868 * ( 1 - -0.93% )	/	( (10.276	+	6.451)	/ 2 )
=	-4.9132724	/	8.3635
=	-58.75 %

where

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	9.858	-	0.494	-	( 2.326	-	max(0, 4.263	-	3.351	+	2.326	))
=	10.276

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	19.779	-	2.214	-	( 12.304	-	max(0, 2.214	-	13.328	+	12.304	))
=	6.451

Note: The Operating Income data used here is two times the semi-annual (Jun. 2015) data.

Mapi - Pharma (NAS:MAPI) 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, Mapi - Pharma's WACC % is 0.00%. Mapi - Pharma's ROC % is 0.00% (calculated using TTM income statement data). Mapi - Pharma 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.

Mapi - Pharma ROC % Related Terms

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Mapi - Pharma (Mapi - Pharma) Business Description

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Address

Website

http://www.mapi-pharma.com

Mapi - Pharma Ltd was incorporated under the laws of the State of Israel on January 29, 2008. It is a development stage pharmaceutical company, engaged in the development of high-barrier to entry and high-added value generic drugs that include complex active pharmaceutical ingredients or APIs, formulations and life cycle management or LCM products that target large markets. The Company is developing two LCM products for the treatment of multiple sclerosis and neuropathic pain. It is also developing a portfolio of approximately 13 complex APIs. Its LCM portfolio focuses on market product, consisting of Glatiramer Acetate Depot, a once-monthly injection for the treatment of MS, Pregabalin ER, extended release capsules for the treatment of neuropathic pain and epilepsy, and Risperidone LAI, a depot formulation of Risperdal Consta, expected to be developed under the abbreviated new drug application ANDA or 505(b)(2) shortened regulatory pathway. Its competitors in the generic pharmaceutical products and LCM markets includes Teva Pharmaceutical Industries Ltd.; Impax Laboratories, Inc.; Alkermes Plc.; Momenta Pharmaceuticals, Inc.; and Andrx Corporation; a private U.S. company. The Company's current patent portfolio contains approximately 20 patent applications for complex APIs, formulations, polymorphs, and routes of synthesis. Its operations are subject to many governmental regulations.