Oncodesign Precision Medicine (STU:ZR8) ROC % : -300.68% (As of Jun. 2022)

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What is Oncodesign Precision Medicine 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 %. Oncodesign Precision Medicine's annualized return on capital (ROC %) for the quarter that ended in Jun. 2022 was -300.68%.

As of today (2024-05-10), Oncodesign Precision Medicine's WACC % is 0.00%. Oncodesign Precision Medicine's ROC % is 0.00% (calculated using TTM income statement data). Oncodesign Precision Medicine earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Oncodesign Precision Medicine ROC % Historical Data

The historical data trend for Oncodesign Precision Medicine'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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Oncodesign Precision Medicine ROC % Chart

Oncodesign Precision Medicine Annual Data

Trend

Dec20

Dec21

ROC %

-249.62

-131.05

Oncodesign Precision Medicine Semi-Annual Data
	Dec20	Dec21	Jun22
ROC %	-	-	-300.68

Oncodesign Precision Medicine ROC % Calculation

Oncodesign Precision Medicine's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-3.726 * ( 1 - 27.83% )	/	( (1.861	+	2.243)	/ 2 )
=	-2.6890542	/	2.052
=	-131.05 %

where

	Invested Capital		(A: 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	))
=	12.409	-	2.118	-	( 8.43	-	max(0, 2.118	-	11.21	+	8.43	))
=	1.861

	Invested Capital		(A: Dec. 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	))
=	8.372	-	1.208	-	( 4.921	-	max(0, 1.208	-	6.525	+	4.921	))
=	2.243

Oncodesign Precision Medicine's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2022 is calculated as:

	ROC % (Q: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Jun. 2022 ))	/ count )
=	-7.712 * ( 1 - 16.68% )	/	( (2.243	+	2.031)	/ 2 )
=	-6.4256384	/	2.137
=	-300.68 %

where

	Invested Capital		(Q: Dec. 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	))
=	8.372	-	1.208	-	( 4.921	-	max(0, 1.208	-	6.525	+	4.921	))
=	2.243

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	4.722	-	1.19	-	( 1.501	-	max(0, 1.19	-	2.841	+	1.501	))
=	2.031

Note: The Operating Income data used here is two times the semi-annual (Jun. 2022) data.

Oncodesign Precision Medicine (STU:ZR8) 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, Oncodesign Precision Medicine's WACC % is 0.00%. Oncodesign Precision Medicine's ROC % is 0.00% (calculated using TTM income statement data). Oncodesign Precision Medicine 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.

Oncodesign Precision Medicine ROC % Related Terms

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Oncodesign Precision Medicine (STU:ZR8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Oncodesign Precision Medicine SA (STU:ZR8) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

18 rue Jean Mazen, Dijon, FRA, 21000

Website

https://www.opm.oncodesign.com

Oncodesign Precision Medicine SA is a biopharmaceutical company specialised in precision medicine. Its mission is to provide patients with effective diagnostic and therapeutic solutions for resistant and metastatic cancers.

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