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NEPH (Nephros) ROC % : 12.09% (As of Sep. 2024)


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What is Nephros 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 %. Nephros's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 12.09%.

As of today (2025-03-14), Nephros's WACC % is 11.86%. Nephros's ROC % is 0.08% (calculated using TTM income statement data). Nephros earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nephros ROC % Historical Data

The historical data trend for Nephros'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.

Nephros ROC % Chart

Nephros Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -56.78 -35.36 -56.89 -26.06 0.08

Nephros Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -48.67 -13.18 -20.00 12.09 18.08

Nephros ROC % Calculation

Nephros'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 )
=-1.593 * ( 1 - 0% )/( (6.34 + 5.887)/ 2 )
=-1.593/6.1135
=-26.06 %

where

Nephros's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=0.824 * ( 1 - 0% )/( (6.426 + 7.209)/ 2 )
=0.824/6.8175
=12.09 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Nephros  (NAS:NEPH) 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, Nephros's WACC % is 11.86%. Nephros's ROC % is 0.08% (calculated using TTM income statement data). Nephros 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.


Nephros ROC % Related Terms

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Nephros Business Description

Traded in Other Exchanges
Address
380 Lackawanna Place, South Orange, NJ, USA, 07079
Nephros Inc is a commercial-stage company that develops and sells high-performance water solutions to the medical and commercial markets. In medical markets, it sells water filtration products and waterborne pathogen detection products. In commercial markets, the company manufactures and sells water filters that improve the taste and odor of water and reduce biofilm, bacteria, and scale build-up in downstream equipment. The company's subsidiary is engaged in the development of its second-generation hemodiafiltration system and other products focused on improving therapies for patients with renal disease.
Executives
Arthur H Amron director C/O WEXFORD CAPITAL LP, 777 WEST PUTNAM AVENUE, FIRST FLOOR, GREENWICH CT 06830
Banks Robert R. Jr. director, officer: President and CEO C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Judy Krandel officer: Chief Financial Officer 320 W. 37TH STREET, 13TH FLOOR, NEW YORK NY 10018
Joseph Michael Harris director C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Wesley S. Lobo officer: Chief Marketing Officer C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Tom Gwydir director C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Andrew Astor officer: Chief Financial Officer 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Charles E Davidson director, 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602, WEST PALM BEACH FL 33401
Wexford Capital Lp director, 10 percent owner 777 WEST PUTNAM AVENUE, 1ST FLOOR, GREENWICH CT 06830
Joseph Jacobs director, 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602 EAST, WEST PALM BEACH FL 33401
Wexford Gp Llc director, 10 percent owner C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602 EAST, WEST PALM BEACH CT 33401
Oliver J. Spandow director C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Daniel S. D'agostino officer: Chief Financial Officer C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Daron Evans director, officer: President and CEO C/O NEPHROS, INC., 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079
Alisa Lask director C/O 380 LACKAWANNA PLACE, SOUTH ORANGE NJ 07079

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