Predictive Technology Group (Predictive Technology Group) ROC % : -17.02% (As of Mar. 2021)

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What is Predictive Technology Group 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 %. Predictive Technology Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2021 was -17.02%.

As of today (2024-05-21), Predictive Technology Group's WACC % is 0.00%. Predictive Technology Group's ROC % is 0.00% (calculated using TTM income statement data). Predictive Technology Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Predictive Technology Group ROC % Historical Data

The historical data trend for Predictive Technology Group'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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Predictive Technology Group ROC % Chart

Predictive Technology Group Annual Data

Trend

Aug06

Aug07

Jun16

Jun17

Jun18

Jun19

Jun20

ROC %

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-5.99

-11.71

-8.26

-12.60

-37.44

Predictive Technology Group Quarterly Data
	Nov07	Feb08	May08	Jun16	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
ROC %	Get a 7-Day Free Trial															-44.58	-31.34	-37.69	-35.84	-17.02

Predictive Technology Group ROC % Calculation

Predictive Technology Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

	ROC % (A: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2019 )	+	Invested Capital (A: Jun. 2020 ))	/ count )
=	-46.663 * ( 1 - 11.04% )	/	( (136.438	+	85.282)	/ 2 )
=	-41.5114048	/	110.86
=	-37.44 %

where

	Invested Capital		(A: Jun. 2019 )
=	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	))
=	143.578	-	12.284	-	( 1.618	-	max(0, 14.075	-	8.931	+	1.618	))
=	136.438

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	83.842	-	11.692	-	( 0.331	-	max(0, 20.836	-	7.704	+	0.331	))
=	85.282

Predictive Technology Group's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	-12.936 * ( 1 - -0.3% )	/	( (78.141	+	74.358)	/ 2 )
=	-12.974808	/	76.2495
=	-17.02 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	70.452	-	15.332	-	( 0.134	-	max(0, 29.41	-	6.389	+	0.134	))
=	78.141

	Invested Capital		(Q: Mar. 2021 )
=	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	))
=	66.959	-	14.39	-	( 0.152	-	max(0, 30.629	-	8.84	+	0.152	))
=	74.358

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

Predictive Technology Group (OTCPK:PRED) 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, Predictive Technology Group's WACC % is 0.00%. Predictive Technology Group's ROC % is 0.00% (calculated using TTM income statement data). Predictive Technology Group 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.

Predictive Technology Group ROC % Related Terms

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Predictive Technology Group (Predictive Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Predictive Technology Group Inc (OTCPK:PRED) » Definitions » ROC %

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Address

2735 Parleys Way, Suite 205, Salt Lake City, UT, USA, 84109

Website

https://www.predtechgroup.com

Predictive Technology Group Inc (PRx) is a biotechnology company. It develops, commercializes, acquires and invests in technologies engaged in novel molecular diagnostic and therapeutic products in healthcare. The HCT/P segment offers minimally manipulated tissue products intended for homologous use, prepared utilizing proprietary extraction methods that reduce the loss of important scaffolding, growth factors and cytokines. The company's Diagnostics and Therapeutics segment uses data analytics for disease identification and subsequent therapeutic intervention through novel gene-based diagnostics, and companion therapeutics. It generates most of its revenues from HCT/Ps segment.