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Microbix Biosystems (TSX:MBX) ROC % : 16.86% (As of Dec. 2024)


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What is Microbix Biosystems 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 %. Microbix Biosystems's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 16.86%.

As of today (2025-03-19), Microbix Biosystems's WACC % is 6.86%. Microbix Biosystems's ROC % is 10.08% (calculated using TTM income statement data). Microbix Biosystems generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Microbix Biosystems ROC % Historical Data

The historical data trend for Microbix Biosystems'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.

* Premium members only.

Microbix Biosystems ROC % Chart

Microbix Biosystems Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.37 31.14 14.35 -13.75 16.85

Microbix Biosystems Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.62 8.11 2.86 12.49 16.86

Microbix Biosystems ROC % Calculation

Microbix Biosystems's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

ROC % (A: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2023 ) + Invested Capital (A: Sep. 2024 ))/ count )
=3.905 * ( 1 - 4.11% )/( (21.967 + 22.472)/ 2 )
=3.7445045/22.2195
=16.85 %

where

Microbix Biosystems's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=3.88 * ( 1 - 0% )/( (22.472 + 23.55)/ 2 )
=3.88/23.011
=16.86 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Microbix Biosystems  (TSX:MBX) 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, Microbix Biosystems's WACC % is 6.86%. Microbix Biosystems's ROC % is 10.08% (calculated using TTM income statement data). Microbix Biosystems generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


Microbix Biosystems ROC % Related Terms

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Microbix Biosystems Business Description

Traded in Other Exchanges
Address
265 Watline Avenue, Mississauga, ON, CAN, L4Z 1P3
Microbix Biosystems Inc develops biological products and technologies. There are two operating segments: The development, manufacturing, and sale of products relating to the medical diagnostics industry, namely antigens as test ingredients, quality assessment products to help ensure the accuracy of test workflows and viral transport medium to enable collection of patient test samples and; Development and commercialization of novel and proprietary products or technologies such as Kinlytic. Geographically, it derives a majority of revenue from North America and also operates in Europe and other foreign countries.
Executives
Bo Hollas Director
James Stuart Currie Senior Officer
Cameron Lionel Groome Director, Senior Officer
Kenneth Hughes Senior Officer
Martin Marino Director
Peter Martin Blecher Director
Philip Jonathan Casselli Senior Officer
Steven Trevor Hagerman Senior Officer
Jennifer Anne Stewart Director
Damian Klimaszewski Senior Officer
Anthony J. Giovinazzo Director
Mark Adrian Luscher Senior Officer