Hemogenyx Pharmaceuticals (Hemogenyx Pharmaceuticals) ROIC % : -59.31% (As of Dec. 2023)

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What is Hemogenyx Pharmaceuticals 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 %. Hemogenyx Pharmaceuticals's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -59.31%.

As of today (2024-05-21), Hemogenyx Pharmaceuticals's WACC % is 11.56%. Hemogenyx Pharmaceuticals's ROIC % is -119.66% (calculated using TTM income statement data). Hemogenyx Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hemogenyx Pharmaceuticals ROIC % Historical Data

The historical data trend for Hemogenyx Pharmaceuticals'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.

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Hemogenyx Pharmaceuticals ROIC % Chart

Hemogenyx Pharmaceuticals Annual Data

Trend

Feb15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-290.53

-146.95

-146.04

-171.73

-120.29

Hemogenyx Pharmaceuticals Semi-Annual Data
	Feb15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial												-188.61	-156.44	-280.44	-183.17	-59.31

Competitive Comparison of Hemogenyx Pharmaceuticals's ROIC %

For the Biotechnology subindustry, Hemogenyx Pharmaceuticals'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.

Hemogenyx Pharmaceuticals's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Hemogenyx Pharmaceuticals's ROIC % falls into.

Hemogenyx Pharmaceuticals ROIC % Calculation

Hemogenyx Pharmaceuticals'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 )
=	-7.037 * ( 1 - 0% )	/	( (5.933	+	5.767)	/ 2 )
=	-7.037	/	5.85
=	-120.29 %

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	))
=	8.639	-	0.456	-	( 3.085	-	max(0, 0.911	-	3.161	+	3.085	))
=	5.933

	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	))
=	7.729	-	0.382	-	( 1.58	-	max(0, 0.825	-	2.747	+	1.58	))
=	5.767

Hemogenyx Pharmaceuticals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-3.398 * ( 1 - 0% )	/	( (5.691	+	5.767)	/ 2 )
=	-3.398	/	5.729
=	-59.31 %

where

	Invested Capital		(Q: Jun. 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	))
=	9.121	-	0.415	-	( 3.895	-	max(0, 0.981	-	3.996	+	3.895	))
=	5.691

	Invested Capital		(Q: 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	))
=	7.729	-	0.382	-	( 1.58	-	max(0, 0.825	-	2.747	+	1.58	))
=	5.767

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Hemogenyx Pharmaceuticals (OTCPK:HOPHF) 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, Hemogenyx Pharmaceuticals's WACC % is 11.56%. Hemogenyx Pharmaceuticals's ROIC % is -119.66% (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.

Hemogenyx Pharmaceuticals ROIC % Related Terms

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Hemogenyx Pharmaceuticals (Hemogenyx Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Hemogenyx Pharmaceuticals PLC (OTCPK:HOPHF) » Definitions » ROIC %

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HEMO:UK 5HU:Germany

Address

60 Gracechurch Street, 6th Floor, London, GBR, EC3V 0HR

Website

https://www.hemogenyx.com

Hemogenyx Pharmaceuticals PLC is a operator of a biotechnology company intended to focus on the discovery, development, and commercialization of novel therapies and treatments for blood diseases, like leukaemia and lymphoma. The company's technologies aim to change the way in which bone marrow/hematopoietic stem cell transplants are performed and improve their efficacy, its three distinct products include an immunotherapy product for the treatment of relapsed/refractory acute myeloid leukaemia (AML) and patient conditioning, the bi-specific antibody, for the treatment of AML and a community-based rehabilitation / Biomedical engineering platform, enabling users to generate treatments for existing and emerging viral infections.