EV Biologics (EV Biologics) ROC % : 45.12% (As of Dec. 2017)

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What is EV Biologics 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 %. EV Biologics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2017 was 45.12%.

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

EV Biologics ROC % Historical Data

The historical data trend for EV Biologics'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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EV Biologics ROC % Chart

EV Biologics Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

ROC %

20.63

22.08

16.63

6.70

-10.54

EV Biologics Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Jun17	Dec17
ROC %	Get a 7-Day Free Trial												-67.14	-11.50	34.50	-	45.12

EV Biologics ROC % Calculation

EV Biologics's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2017 is calculated as:

	ROC % (A: Jun. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2016 )	+	Invested Capital (A: Jun. 2017 ))	/ count )
=	-3.93 * ( 1 - -3.73% )	/	( (38.155	+	39.163)	/ 2 )
=	-4.076589	/	38.659
=	-10.54 %

where

	Invested Capital		(A: Jun. 2016 )
=	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	))
=	36.443	-	12.776	-	( 2.735	-	max(0, 25.149	-	10.661	+	2.735	))
=	38.155

	Invested Capital		(A: Jun. 2017 )
=	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	))
=	33.278	-	14.761	-	( 1.814	-	max(0, 29.559	-	8.913	+	1.814	))
=	39.163

EV Biologics's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2017 is calculated as:

	ROC % (Q: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2017 )	+	Invested Capital (Q: Dec. 2017 ))	/ count )
=	19.484 * ( 1 - 7.98% )	/	( (39.163	+	40.316)	/ 2 )
=	17.9291768	/	39.7395
=	45.12 %

where

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	33.278	-	14.761	-	( 1.814	-	max(0, 29.559	-	8.913	+	1.814	))
=	39.163

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	58.954	-	10.251	-	( 8.387	-	max(0, 16.719	-	52.049	+	8.387	))
=	40.316

Note: The Operating Income data used here is four times the quarterly (Dec. 2017) data.

EV Biologics (OTCPK:YECO) 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, EV Biologics's WACC % is 0.00%. EV Biologics's ROC % is 0.00% (calculated using TTM income statement data). EV Biologics 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.

EV Biologics ROC % Related Terms

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EV Biologics (EV Biologics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » EV Biologics Inc (OTCPK:YECO) » Definitions » ROC %

Comparable Companies

XCNQ:NIRV ENVB BLCM NLSP BRTX ADTX XKRX:066830 ALLR XMAD:ADL ARTL

Traded in Other Exchanges

N/A

Address

1621 Central Avenue, Cheyenne, WY, USA, 82001

Website

https://www.evbiologics.com

EV Biologics Inc is developing the extraordinary biological properties of extracellular vesicles (EVs) to create the next generation of diagnostic modalities and safe, effective biotherapeutics to improve outcomes of serious clinical conditions, increase natural longevity and transform lives.

Executives

Daniel S Mckinney	director, 10 percent owner, officer: CEO	TWO IFC, 19TH FLOOR, 8 FINANCE STREET, CENTRAL, HONG KONG F4 000000
Michael W Harlan	director	C/O WASTE CONNECTIONS, INC., 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3