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InnoCare Pharma (FRA:33C) ROIC % : -17.23% (As of Jun. 2024)


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What is InnoCare Pharma 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 %. InnoCare Pharma's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -17.23%.

As of today (2024-12-14), InnoCare Pharma's WACC % is 10.20%. InnoCare Pharma's ROIC % is -19.52% (calculated using TTM income statement data). InnoCare Pharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.


InnoCare Pharma ROIC % Historical Data

The historical data trend for InnoCare Pharma'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.

InnoCare Pharma ROIC % Chart

InnoCare Pharma Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial -114.15 -133.03 -73.62 -38.16 -22.18

InnoCare Pharma Quarterly Data
Dec17 Sep18 Dec18 Jun19 Sep19 Dec19 Jun20 Dec20 Jun21 Dec21 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 -32.37 -18.85 -21.96 -17.23 -14.76

Competitive Comparison of InnoCare Pharma's ROIC %

For the Biotechnology subindustry, InnoCare Pharma'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.


InnoCare Pharma's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, InnoCare Pharma's ROIC % distribution charts can be found below:

* The bar in red indicates where InnoCare Pharma's ROIC % falls into.



InnoCare Pharma ROIC % Calculation

InnoCare Pharma'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 )
=-83.441 * ( 1 - -0.22% )/( (373.938 + 380.127)/ 2 )
=-83.6245702/377.0325
=-22.18 %

where

Invested Capital(A: 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))
=1397.532 - 45.393 - ( 1220.16 - max(0, 281.022 - 1259.223+1220.16))
=373.938

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))
=1273.892 - 36.981 - ( 1056.267 - max(0, 268.927 - 1125.711+1056.267))
=380.127

InnoCare Pharma's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-69.96 * ( 1 - -0.03% )/( (373.039 + 439.344)/ 2 )
=-69.980988/406.1915
=-17.23 %

where

Invested Capital(Q: Mar. 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))
=1247.654 - 35.882 - ( 1047.794 - max(0, 262.573 - 1101.306+1047.794))
=373.039

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))
=1239.075 - 36.648 - ( 966.384 - max(0, 270.394 - 1033.477+966.384))
=439.344

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


InnoCare Pharma  (FRA:33C) 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, InnoCare Pharma's WACC % is 10.20%. InnoCare Pharma's ROIC % is -19.52% (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.


InnoCare Pharma ROIC % Related Terms

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InnoCare Pharma Business Description

Traded in Other Exchanges
Address
No. 8 Life Science Park Road, Building 8, Zhongguancun Life Science Park, Changping District, Beijing, CHN, 102206
InnoCare Pharma Ltd is a commercial-stage biopharmaceutical company. It discovers, develops, and commercializes drugs for the treatment of cancer and autoimmune diseases. The company's main product pipeline includes orelabrutinib, ibrutinib, zanubrutinib, tafasitamab, ICP-490, ICP-B02, ICP-248, ICP-192, ICP-723, and ICP-189, among others. Its products are mainly used to treat hematological tumors, solid tumors, and autoimmune diseases. The company is also developing products for the treatment of autoimmune diseases caused by abnormal B-cell or T-cell function.

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