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IKNA (Ikena Oncology) ROIC % : -350.39% (As of Sep. 2024)


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What is Ikena Oncology 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 %. Ikena Oncology's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -350.39%.

As of today (2024-12-14), Ikena Oncology's WACC % is 7.80%. Ikena Oncology's ROIC % is -374.12% (calculated using TTM income statement data). Ikena Oncology earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Ikena Oncology ROIC % Historical Data

The historical data trend for Ikena Oncology'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.

Ikena Oncology ROIC % Chart

Ikena Oncology Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
-81.78 -185.30 -116.54 -237.06 -319.78

Ikena Oncology 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 -399.17 -407.73 -338.11 -405.28 -350.39

Competitive Comparison of Ikena Oncology's ROIC %

For the Biotechnology subindustry, Ikena Oncology'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.


Ikena Oncology's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Ikena Oncology's ROIC % falls into.



Ikena Oncology ROIC % Calculation

Ikena Oncology'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 )
=-75.417 * ( 1 - 0.24% )/( (26.671 + 20.384)/ 2 )
=-75.2359992/23.5275
=-319.78 %

where

Ikena Oncology'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 )
=-46.38 * ( 1 - -0.1% )/( (13.326 + 13.174)/ 2 )
=-46.42638/13.25
=-350.39 %

where

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.


Ikena Oncology  (NAS:IKNA) 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, Ikena Oncology's WACC % is 7.80%. Ikena Oncology's ROIC % is -374.12% (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.


Ikena Oncology ROIC % Related Terms

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Ikena Oncology Business Description

Traded in Other Exchanges
N/A
Address
645 Summer Street, Suite 101, Boston, MA, USA, 02210
Ikena Oncology Inc is a targeted oncology company developing precision therapies for patients in need that target nodes of cancer growth, spread, and therapeutic resistance in the Hippo and RAS onco-signaling network. Its targeted oncology product candidate, IK-930, is an oral small-molecule inhibitor of the transcriptional enhanced associate domain, or TEAD, a transcription factor in the Hippo signaling pathway, a known oncogenic pathway that also drives resistance to multiple targeted and chemotherapies. Its other product candidates are IK-175 and IK-595.
Executives
Owen Hughes director C/O RADIUS HEALTH, INC., 201 BROADWAY, 6TH FLOOR, BOSTON MA 02139
Jotin Marango officer: CFO & Head of Corp. Dev. C/O APTOSE BIOSCIENCES INC., 251 CONSUMERS ROAD, SUITE 1105, TORONTO A6 M2J 4R3
Francisco Oliveira officer: Principal Accounting Officer IKENA ONCOLOGY, INC., 645 SUMMER STREET, SUITE 101, BOSTON MA 02210
Richard Wooster director C/O TRANSLATE BIO, INC., 29 HARTWELL AVENUE, LEXINGTON MA 02421
Xiaoyan Michelle Zhang officer: Chief Scientific Officer C/O IKENA ONCOLOGY, INC., 645 SUMMER STREET SUITE 101, BOSTON MA 02210
Jean Francois Formela director C/O ATLAS VENTURE, 890 WINTER STREET, WALTHAM MA 02451
Atlas Venture Fund Xi, L.p. 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Maria Koehler director C/O REPARE THERAPEUTICS INC., 7210 FREDERICK-BANTING, SUITE 100, ST-LAURENT A8 H4S 2A1
Orbimed Advisors Llc director 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
David P Bonita director C/O ORBIMED ADVISORS LLC, 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Mark Manfredi director, officer: President & CEO C/O IKENA ONCOLOGY, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Maude Tessier officer: Chief Business Officer C/O IKENA ONCOLOGY, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Jeffrey Ecsedy officer: Chief Scientific Officer C/O IKENA ONCOLOGY, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Atlas Venture Associates Xi, L.p. 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Associates Xi, Llc 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139