Pathfinder Cell Therapy (Pathfinder Cell Therapy) ROC % : -15.62% (As of Sep. 2015)

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What is Pathfinder Cell Therapy 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 %. Pathfinder Cell Therapy's annualized return on capital (ROC %) for the quarter that ended in Sep. 2015 was -15.62%.

As of today (2024-06-07), Pathfinder Cell Therapy's WACC % is 0.00%. Pathfinder Cell Therapy's ROC % is 0.00% (calculated using TTM income statement data). Pathfinder Cell Therapy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pathfinder Cell Therapy ROC % Historical Data

The historical data trend for Pathfinder Cell Therapy'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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Pathfinder Cell Therapy ROC % Chart

Pathfinder Cell Therapy Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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-140.41

-427.91

-136.97

-49.30

-24.75

Pathfinder Cell Therapy 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															-18.04	-17.70	-16.00	-11.03	-15.62

Pathfinder Cell Therapy ROC % Calculation

Pathfinder Cell Therapy'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 )
=	-1.119 * ( 1 - 0% )	/	( (4.025	+	5.016)	/ 2 )
=	-1.119	/	4.5205
=	-24.75 %

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	))
=	0.155	-	0.717	-	( 0.044	-	max(0, 4.706	-	0.119	+	0.044	))
=	4.025

	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	))
=	0.106	-	1.066	-	( 0.026	-	max(0, 6.049	-	0.073	+	0.026	))
=	5.016

Pathfinder Cell Therapy'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 )
=	-0.836 * ( 1 - 0% )	/	( (5.262	+	5.443)	/ 2 )
=	-0.836	/	5.3525
=	-15.62 %

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	))
=	0.049	-	1.259	-	( 0	-	max(0, 6.49	-	0.018	+	0	))
=	5.262

	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	))
=	0.039	-	1.356	-	( 0.004	-	max(0, 6.769	-	0.009	+	0.004	))
=	5.443

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

Pathfinder Cell Therapy (OTCPK:PFND) 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, Pathfinder Cell Therapy's WACC % is 0.00%. Pathfinder Cell Therapy's ROC % is 0.00% (calculated using TTM income statement data). Pathfinder Cell Therapy 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.

Pathfinder Cell Therapy ROC % Related Terms

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Pathfinder Cell Therapy (Pathfinder Cell Therapy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Pathfinder Cell Therapy Inc (OTCPK:PFND) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

12 Bow Street, Cambridge, MA, USA, 02138

Website

http://www.pathfindercelltherapy.com

Pathfinder Cell Therapy Inc is a regenerative medicine company. It is engaged in developing novel cell-based and related therapies for the treatment of diabetes, renal diseases and medical conditions characterized by organ-specific cell damage. Further, the group has discovered a new mammalian cell type, which is able to stimulate damaged tissues to regenerate without the Pathfinder Cells ("PCs") themselves being incorporated into the new tissue. Geographically the business activities are functioned through the region of United States.

Executives

John J Alam	director	130 WAVERLY STREET, CAMBRIDGE MA 02139
John L Brooks	director	100 LOWDER BROOK DRIVE SUITE 2500, WESTWOOD MA 02090

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