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PCSC (Perceptive Capital Solutions) ROC % : -0.90% (As of Sep. 2024)


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What is Perceptive Capital Solutions 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 %. Perceptive Capital Solutions's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -0.90%.

As of today (2024-12-14), Perceptive Capital Solutions's WACC % is 10.32%. Perceptive Capital Solutions's ROC % is 0.00% (calculated using TTM income statement data). Perceptive Capital Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Perceptive Capital Solutions ROC % Historical Data

The historical data trend for Perceptive Capital Solutions'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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Perceptive Capital Solutions ROC % Chart

Perceptive Capital Solutions Annual Data
Trend
ROC %

Perceptive Capital Solutions Quarterly Data
Mar24 Jun24 Sep24
ROC % - -1.13 -0.90

Perceptive Capital Solutions ROC % Calculation

Perceptive Capital Solutions's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Perceptive Capital Solutions'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 )
=-0.784 * ( 1 - 0% )/( (86.579 + 87.638)/ 2 )
=-0.784/87.1085
=-0.90 %

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.


Perceptive Capital Solutions  (NAS:PCSC) 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, Perceptive Capital Solutions's WACC % is 10.32%. Perceptive Capital Solutions's ROC % is 0.00% (calculated using TTM income statement data). Perceptive Capital Solutions 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.


Perceptive Capital Solutions ROC % Related Terms

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Perceptive Capital Solutions Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
51 Astor Place, 10th Floor, New York, NY, USA, 10003
Website
Perceptive Capital Solutions Corp is a blank check company.

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