GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Esperion Therapeutics Inc (NAS:ESPR) » Definitions » ROIC %

ESPR (Esperion Therapeutics) ROIC % : -17.17% (As of Dec. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Esperion 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 %. Esperion Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -17.17%.

As of today (2025-03-13), Esperion Therapeutics's WACC % is 16.85%. Esperion Therapeutics's ROIC % is 74.64% (calculated using TTM income statement data). Esperion Therapeutics 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.


Esperion Therapeutics ROIC % Historical Data

The historical data trend for Esperion 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.

Esperion Therapeutics ROIC % Chart

Esperion Therapeutics Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -608.06 -475.95 -434.09 -549.16 62.37

Esperion Therapeutics Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -455.44 658.76 17.77 -88.60 -17.17

Competitive Comparison of Esperion Therapeutics's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Esperion 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.


Esperion Therapeutics's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Esperion Therapeutics's ROIC % distribution charts can be found below:

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



Esperion Therapeutics ROIC % Calculation

Esperion Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=54.402 * ( 1 - 0% )/( (42.455 + 131.982)/ 2 )
=54.402/87.2185
=62.37 %

where

Invested Capital(A: Dec. 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))
=343.821 - 120.074 - ( 144.761 - max(0, 246.233 - 337.998+144.761))
=131.982

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

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-17.68 * ( 1 - 0% )/( (73.911 + 131.982)/ 2 )
=-17.68/102.9465
=-17.17 %

where

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))
=314.114 - 98.521 - ( 144.717 - max(0, 165.873 - 307.555+144.717))
=73.911

Invested Capital(Q: Dec. 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))
=343.821 - 120.074 - ( 144.761 - max(0, 246.233 - 337.998+144.761))
=131.982

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.


Esperion Therapeutics  (NAS:ESPR) 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, Esperion Therapeutics's WACC % is 16.85%. Esperion Therapeutics's ROIC % is 74.64% (calculated using TTM income statement data). Esperion Therapeutics 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. Esperion Therapeutics 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 %, 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.


Esperion Therapeutics ROIC % Related Terms

Thank you for viewing the detailed overview of Esperion Therapeutics's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Esperion Therapeutics Business Description

Traded in Other Exchanges
Address
3891 Ranchero Drive, Suite 150, Ann Arbor, MI, USA, 48108
Esperion Therapeutics Inc is a pharmaceutical company. It specializes in developing and commercializing accessible, oral, once-daily, non-statin medicines for patients struggling with elevated low-density lipoprotein cholesterol. The firm has the business of researching, developing and commercializing therapies for the treatment of patients with the elevated low-density lipoprotein cholesterol operating segment. Its products include NEXLETOL, NEXLIZET, NILEMDO and NUSTENDI. The Company manages its business in one operating segment, which is the business of researching, developing and commercializing therapies for the treatment of patients with elevated LDL-C.
Executives
Benjamin Halladay officer: Chief Financial Officer ESPERION THERAPEUTICS, INC., 3891 RANCHERO DRIVE, SUITE 150, ANN ARBOR MI 48108
Eric Warren officer: Chief Commercial Officer 3891 RANCHERO DRIVE, SUITE 150, ANN ARBOR MI 48108
Sheldon L. Koenig officer: Chief Operating Officer C/O PORTOLA PHARMACEUTICALS, INC., 270 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Joanne M. Foody officer: Chief Medical Officer C/O ESPERION THERAPEUTICS, INC., 3891 RANCHERO DRIVE, SUITE 150, ANN ARBOR MI 48108
J Martin Carroll director C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873
Stephen Rocamboli director C/OPARMOUNT CAPITAL, 787 SEVENTH AVE 48TH FL, NEW YORK NY 10019
Benjamin Looker officer: General Counsel C/O TRILLIUM THERAPEUTICS INC., 2488 DUNWIN DRIVE, MISSISSAUGA A6 L5L 1J9
Fischer Seth H.z. director C/O TRIUS THERAPEUTICS, INC., 6310 NANCY RIDGE DRIVE, SUITE 101, SAN DIEGO CA 92121
Biotech Target N V 10 percent owner ARA HILL TOP BUILDING, UNIT A-5, PLETTERIJWEG OOST 1, CURACAO, WILLEMSTAD P8 000000
Alan Fuhrman director C/O AMBIT BIOSCIENCES CORPORATION, 11080 ROSELLE STREET, SAN DIEGO CA 92121
Timothy M Mayleben director, officer: Pres & Chief Executive Officer 3621 SOUTH STATE ST, 695 KMS PL, ANN ARBOR MI 48108
Ashley Hall officer: Chief Development Officer C/O ESPERION THERAPEUTICS INC., 3891 RANCHERO DRIVE SUITE 150, ANN ARBOR MI 48108
Tracy M Woody director 2656 CROSSPARK ROAD, SUITE 100, CORALVILLE IA 52241
Richard Bartram officer: Chief Financial Officer C/O ESPERION THERAPEUTICS, INC., 3891 RANCHERO DRIVE, SUITE 150, ANN ARBOR MI 48108
Nicole Vitullo director, 10 percent owner 3030 SCIENCE PARK ROAD, SAN DIEGO CA 92121