OncoVista Innovative Therapies (OncoVista Innovative Therapies) ROC % : -58.99% (As of Sep. 2015)

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What is OncoVista Innovative Therapies 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 %. OncoVista Innovative Therapies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2015 was -58.99%.

As of today (2024-06-19), OncoVista Innovative Therapies's WACC % is 0.00%. OncoVista Innovative Therapies's ROC % is 0.00% (calculated using TTM income statement data). OncoVista Innovative Therapies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

OncoVista Innovative Therapies ROC % Historical Data

The historical data trend for OncoVista Innovative Therapies'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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OncoVista Innovative Therapies ROC % Chart

OncoVista Innovative Therapies Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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-54.09

-297.23

-428.32

-285.29

-201.11

OncoVista Innovative Therapies Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROC %	Get a 7-Day Free Trial															-63.81	-422.65	-63.01	-222.84	-58.99

OncoVista Innovative Therapies ROC % Calculation

OncoVista Innovative Therapies'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 )
=	-2.546 * ( 1 - 0% )	/	( (0.916	+	1.616)	/ 2 )
=	-2.546	/	1.266
=	-201.11 %

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	))
=	0.096	-	2.3	-	( 0.045	-	max(0, 3.216	-	0.096	+	0.045	))
=	0.916

	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	))
=	0.013	-	3.36	-	( 0.013	-	max(0, 4.976	-	0.013	+	0.013	))
=	1.616

OncoVista Innovative Therapies's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-1.268 * ( 1 - 0% )	/	( (2.056	+	2.243)	/ 2 )
=	-1.268	/	2.1495
=	-58.99 %

where

	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	))
=	0.028	-	4.309	-	( 0.028	-	max(0, 6.365	-	0.028	+	0.028	))
=	2.056

	Invested Capital		(Q: Sep. 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	))
=	0.061	-	3.708	-	( 0.061	-	max(0, 5.951	-	0.061	+	0.061	))
=	2.243

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

OncoVista Innovative Therapies (OTCPK:OVIT) 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, OncoVista Innovative Therapies's WACC % is 0.00%. OncoVista Innovative Therapies's ROC % is 0.00% (calculated using TTM income statement data). OncoVista Innovative Therapies 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.

OncoVista Innovative Therapies ROC % Related Terms

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OncoVista Innovative Therapies (OncoVista Innovative Therapies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » OncoVista Innovative Therapies Inc (OTCPK:OVIT) » Definitions » ROC %

Comparable Companies

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Address

14785 Omicron Drive, Suite 104, San Antonio, TX, USA, 78245

Website

http://www.oncovista.com

OncoVista Innovative Therapies Inc is a biopharmaceutical company. It is engaged in developing anticancer therapies by utilizing tumor-associated biomarkers.

Executives

Alexander Ruckdaeschel	director	123 EAST 83RD STREET, APT 3-B, NEW YORK NY 10028
Paul A Mieyal	director	C/O WEXFORD CAPITAL LP, 411 WEST PUTNAM AVE, SUITE 125, GREENWICH CT 06830
Charles E Davidson	10 percent owner	C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602, WEST PALM BEACH FL 33401
Wexford Capital Lp	10 percent owner	777 WEST PUTNAM AVENUE, 1ST FLOOR, GREENWICH CT 06830
Joseph Jacobs	10 percent owner	C/O WEXFORD CAPITAL LP, 777 SOUTH FLAGLER DRIVE, SUITE 602 EAST, WEST PALM BEACH FL 33401
Wexford Spectrum Trading Ltd	10 percent owner	411 WEST PUTNAM AVENUE, SUITE 125, GREENWICH CT 06830

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