TSOI (Therapeutic Solutions International) ROC % : -198.26% (As of Sep. 2024)

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What is Therapeutic Solutions International 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 %. Therapeutic Solutions International's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -198.26%.

As of today (2024-12-14), Therapeutic Solutions International's WACC % is 14.28%. Therapeutic Solutions International's ROC % is -87.51% (calculated using TTM income statement data). Therapeutic Solutions International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Therapeutic Solutions International ROC % Historical Data

The historical data trend for Therapeutic Solutions International'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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Therapeutic Solutions International ROC % Chart

Therapeutic Solutions International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-76.95

-109.53

-118.22

-96.97

-45.54

Therapeutic Solutions International Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-42.66	-52.36	-65.07	-40.15	-198.26

Therapeutic Solutions International ROC % Calculation

Therapeutic Solutions International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-1.986 * ( 1 - -0.09% )	/	( (4.565	+	4.165)	/ 2 )
=	-1.9877874	/	4.365
=	-45.54 %

where

	Invested Capital		(A: Dec. 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	))
=	3.606	-	0.941	-	( 0.018	-	max(0, 2.21	-	0.31	+	0.018	))
=	4.565

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	3.292	-	0.941	-	( 0.028	-	max(0, 1.9	-	0.086	+	0.028	))
=	4.165

Therapeutic Solutions International'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 )
=	-7.84 * ( 1 - 0% )	/	( (3.958	+	3.951)	/ 2 )
=	-7.84	/	3.9545
=	-198.26 %

where

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	3.775	-	0.931	-	( 0.008	-	max(0, 1.85	-	0.736	+	0.008	))
=	3.958

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	3.6	-	0.989	-	( 0.009	-	max(0, 1.839	-	0.499	+	0.009	))
=	3.951

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Therapeutic Solutions International (OTCPK:TSOI) 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, Therapeutic Solutions International's WACC % is 14.28%. Therapeutic Solutions International's ROC % is -87.51% (calculated using TTM income statement data). Therapeutic Solutions International 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.

Therapeutic Solutions International ROC % Related Terms

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Therapeutic Solutions International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Therapeutic Solutions International Inc (OTCPK:TSOI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

701 Wild Rose Lane, Elk City, ID, USA, 83525

Website

https://www.therapeuticsolutionsint.com

Therapeutic Solutions International Inc focuses on immune modulation for the treatment of several specific diseases. It is engaged in developing a range of immune-modulatory agents to target certain cancers, improve maternal and fetal health, fight periodontal disease, and for daily health. The business divisions of the company are Nutraceutical Division which produces nutraceuticals. Its current product, QuadraMune, is a patented synergistic blend of pterostilbene, sulforaphane, epigallocatechingallate, and thymoquionone. Cellular Division obtained exclusive rights to a patented adult stem cell for the development of therapeutics in the area of chronic traumatic encephalopathy and traumatic brain injury and Lung Pathology.

Executives

Thomas Ichim	director	211 E. OSBORN RD, PHOENIX AZ 85012
Gerry B Berg	officer: CFO	1658 AVENIDA LA POSTA, ENCINITAS CA 92024
Timothy G Dixon	director, officer: Chairman, President, CEO	4093 OCEANSIDE BLVD., SUITE B, OCEANSIDE CA 92056
Barry Glassman	officer: VP, Training & Education	2051 ELBOW LANE, ALLENTOWN PA 18103
James P Boyd	director, 10 percent owner	PO BOX 2145, RANCHO SANTA FE CA 92067