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ACRS (Aclaris Therapeutics) ROIC % : -72.09% (As of Sep. 2024)


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What is Aclaris Therapeutics ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Aclaris Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -72.09%.

As of today (2024-12-15), Aclaris Therapeutics's WACC % is 8.27%. Aclaris Therapeutics's ROIC % is -94.69% (calculated using TTM income statement data). Aclaris Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Aclaris Therapeutics ROIC % Historical Data

The historical data trend for Aclaris Therapeutics's ROIC % 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.

Aclaris Therapeutics ROIC % Chart

Aclaris Therapeutics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -139.97 -221.86 -175.67 -201.10 -217.92

Aclaris Therapeutics Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % 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 -111.61 -106.69 -109.17 -110.82 -72.09

Competitive Comparison of Aclaris Therapeutics's ROIC %

For the Diagnostics & Research subindustry, Aclaris Therapeutics's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aclaris Therapeutics's ROIC % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Aclaris Therapeutics's ROIC % distribution charts can be found below:

* The bar in red indicates where Aclaris Therapeutics's ROIC % falls into.



Aclaris Therapeutics ROIC % Calculation

Aclaris Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-116.314 * ( 1 - 0.41% )/( (31.227 + 75.087)/ 2 )
=-115.8371126/53.157
=-217.92 %

where

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))
=197.405 - 24.414 - ( 119.106 - max(0, 30.952 - 128.856+119.106))
=75.087

Aclaris Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-38.684 * ( 1 - 0% )/( (48.225 + 59.099)/ 2 )
=-38.684/53.662
=-72.09 %

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))
=161.071 - 10.893 - ( 111.093 - max(0, 15.682 - 117.635+111.093))
=48.225

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


Aclaris Therapeutics  (NAS:ACRS) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Aclaris Therapeutics's WACC % is 8.27%. Aclaris Therapeutics's ROIC % is -94.69% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Aclaris Therapeutics ROIC % Related Terms

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Aclaris Therapeutics Business Description

Traded in Other Exchanges
Address
701 Lee Road, Suite 103, Wayne, PA, USA, 19087
Aclaris Therapeutics Inc is a clinical-stage biopharmaceutical company that operates in the United States. It focuses on developing novel drug candidates for immuno-inflammatory diseases. The company operates in two segments: therapeutics and contract research. The therapeutics segment is focused on identifying and developing inventive therapies to address unmet needs for immuno-inflammatory diseases. The contract research segment earns revenue from the provision of laboratory services. The majority of its revenue comes from the contract research segment, which provides laboratory services. Its drug candidates under development are Zunsemetinib, which is an Oral MK2 Inhibitor; ATI-2138 is an ITJ Inhibitor; and ATI-1777.
Executives
Anand Mehra director 3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025
Joseph Monahan officer: Chief Scientific Officer C/O ACLARIS THERAPEUTICS, INC., 640 LEE ROAD, SUITE 200, WAYNE PA 19087
Kevin Balthaser officer: Chief Financial Officer C/O ACLARIS THERAPEUTICS, INC., 640 LEE ROAD, SUITE 200, WAYNE PA 19087
James Loerop officer: Chief Business Officer C/O ACLARIS THERAPEUTICS, INC., 640 LEE ROAD, SUITE 200, WAYNE PA 19087
Douglas J. Manion officer: Pres and COO C/O ACLARIS THERAPEUTICS, INC., 640 LEE ROAD, SUITE 200, WAYNE PA 19087
Neal Walker director, officer: President and CEO 15 NEW ENGLAND EXECUTIVE PARK, BURLINGTON MA 01803
Andrew N Schiff director PLANET ZANETT INC, 135 E 57TH ST, NEW YORK NY 10022
Gail Cawkwell officer: Chief Medical Officer C/O ACLARIS THERAPEUTICS, INC., 640 LEE ROAD, SUITE 200, WAYNE PA 19087
Frank Ruffo officer: Chief Financial Officer C/O ACLARIS THERAPEUTICS, INC., 101 LINDENWOOD DRIVE, SUITE 400, MALVERN PA 19355
David N. Gordon officer: Chief Medical Officer C/O ACLARIS THERAPEUTICS, INC., 101 LINDENWOOD DRIVE, SUITE 400, MALVERN PA 19355
Kamil Ali-jackson officer: Chief Legal Officer C/O ACLARIS THERAPEUTICS, INC., 101 LINDENWOOD DRIVE, SUITE 400, MALVERN PA 19355
James B. Tananbaum 10 percent owner 3052 PACIFIC AVENUE, SAN FRANCISCO CA 94115
Foresite Capital Management Iii, Llc 10 percent owner 900 LARKSPUR LANDING CIRCLE, SUITE 150, LARKSPUR CA 94939
Foresite Capital Fund Iii, L.p. 10 percent owner 600 MONTGOMERY STREET, SUITE 4500, SAN FRANCISCO CA 94111
Foresite Capital Fund Iv, L.p. 10 percent owner 600 MONTGOMERY STREET, SUITE 4500, SAN FRANCISCO CA 94111