Navco Pharmaceuticals (TSXV:NAV) ROC % : 700.00% (As of Mar. 2023)

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What is Navco Pharmaceuticals 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 %. Navco Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 700.00%.

As of today (2024-05-24), Navco Pharmaceuticals's WACC % is 9.70%. Navco Pharmaceuticals's ROC % is -294.44% (calculated using TTM income statement data). Navco Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Navco Pharmaceuticals ROC % Historical Data

The historical data trend for Navco Pharmaceuticals'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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Navco Pharmaceuticals ROC % Chart

Navco Pharmaceuticals Annual Data

Trend

Jun18

Jun19

Jun20

Jun21

ROC %

-445.78

-850.00

-94.12

Navco Pharmaceuticals Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
ROC %	Get a 7-Day Free Trial														-68.57	-784.00	-1,600.00	-	700.00

Navco Pharmaceuticals ROC % Calculation

Navco Pharmaceuticals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2021 is calculated as:

	ROC % (A: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2020 )	+	Invested Capital (A: Jun. 2021 ))	/ count )
=	-0.08 * ( 1 - 0% )	/	( (0	+	0.085)	/ 1 )
=	-0.08	/	0.085
=	-94.12 %

where

	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	))
=	0.181	-	0.02	-	( 0.181	-	max(0, 0.02	-	0.181	+	0.181	))
=	0

	Invested Capital		(A: Jun. 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	))
=	0.116	-	0.019	-	( 0.012	-	max(0, 0.019	-	0.116	+	0.012	))
=	0.085

Navco Pharmaceuticals's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	0.028 * ( 1 - 0% )	/	( (0	+	0.004)	/ 1 )
=	0.028	/	0.004
=	700.00 %

where

	Invested Capital		(Q: 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	))
=	0.094	-	0.098	-	( 0	-	max(0, 0.098	-	0.094	+	0	))
=	0

	Invested Capital		(Q: Mar. 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	))
=	0.095	-	0.091	-	( 0	-	max(0, 0.091	-	0.095	+	0	))
=	0.004

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) data.

Navco Pharmaceuticals (TSXV:NAV) 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, Navco Pharmaceuticals's WACC % is 9.70%. Navco Pharmaceuticals's ROC % is -294.44% (calculated using TTM income statement data). Navco Pharmaceuticals 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.

Navco Pharmaceuticals ROC % Related Terms

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Navco Pharmaceuticals (TSXV:NAV) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Navco Pharmaceuticals Inc (TSXV:NAV) » Definitions » ROC %

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Address

1055 West Georgia Street, Suite 1500, Vancouver, BC, CAN, V6E 4N7

Website

Navco Pharmaceuticals Inc uses of nanotechnology to develop and commercialize novel products to protect against viruses, bacteria, and infectious diseases. The company's pipeline of applications is tailored to defend against pathogens utilizing new methods of action to capitalize on unmet product needs using natural & known compounds, nanoparticles, and no chemicals with a high degree of efficacy. Its target markets include human health & personal skin care, household & institutional products, and veterinary health.