NKGN (NKGen Biotech) ROC %: -37.95% (As of Mar. 2025)

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What is NKGen Biotech ROC %?

NKGen Biotech NKGN ROC % is -37.95% as of Mar. 2025.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NKGen Biotech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was -37.95%.

As of today (2026-07-14), NKGen Biotech's WACC % is 0.00%. NKGen Biotech's ROC % is 0.00% (calculated using TTM income statement data). NKGen Biotech earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NKGen Biotech  (OTCPK:NKGN) 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, NKGen Biotech's WACC % is 0.00%. NKGen Biotech's ROC % is 0.00% (calculated using TTM income statement data). NKGen Biotech 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.

NKGen Biotech ROC % Related Terms

NKGen Biotech ROC % Historical Data

* Premium members only.

The historical data trend for NKGen Biotech'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.

NKGen Biotech ROC % Chart

NKGen Biotech Annual Data
Trend Dec21 Dec22 Dec23 Dec24
ROC %
-31.51 -49.82 -85.38 -55.01

NKGen Biotech Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -77.24 -67.01 -62.46 -44.23 -37.95

NKGen Biotech ROC % Calculation

NKGen Biotech's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-26.966 * ( 1 - 0% )/( (41.317 + 56.715)/ 2 )
=-26.966/49.016
=-55.01 %

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))
=16.481 - 12.686 - ( 0.026 - max(0, 39.452 - 1.93+0.026))
=41.317

Invested Capital(A: Dec. 2024 )
=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))
=16.231 - 15.028 - ( 0.106 - max(0, 57.971 - 2.459+0.106))
=56.715

NKGen Biotech's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=-18.664 * ( 1 - 0% )/( (56.715 + 41.649)/ 2 )
=-18.664/49.182
=-37.95 %

where

Invested Capital(Q: Dec. 2024 )
=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))
=16.231 - 15.028 - ( 0.106 - max(0, 57.971 - 2.459+0.106))
=56.715

Invested Capital(Q: Mar. 2025 )
=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))
=15.842 - 15.7 - ( 0.006 - max(0, 43.888 - 2.381+0.006))
=41.649

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -37.95% mean?
NKGen Biotech (NKGN) has a ROC % of -37.95% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NKGen Biotech and its competitors.
Is NKGen Biotech's ROC % too high?
NKGen Biotech's current ROC % is -37.95%.
How does NKGen Biotech's ROC % compare to CALC and CLGN?
NKGen Biotech's ROC % of -37.95% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NKGen Biotech and its competitors. NKGen Biotech's current ROC % is -37.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NKGen Biotech stock overvalued right now?
NKGen Biotech (NKGN) has a current ROC % of -37.95%. The current ROC % is -37.95%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For NKGen Biotech (NKGN), the current ROC % is -37.95% as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

NKGen Biotech Business Description

Address 3001 Daimler Street, Santa Ana, CA, USA, 92705
NKGen Biotech Inc is a biotechnology company developing cell therapies for neurodegenerative and oncological diseases based on activated NK cells. NK cells are part of the human innate immune response system that can selectively identify and destroy abnormal or diseased cells. Its product candidates are based on a proprietary manufacturing and cryopreservation process that produces SuperNKTM (SNK) cells that have shown increased activity as compared to the starting population of NK cells, based on the results of in vitro experiments performed by NKMAX, as defined by parameters such as cytotoxicity, cytokine production and activating receptor expression. SNK cells can be produced in large quantities and cryopreserved while maintaining high levels of cytotoxicity.