GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Disc Medicine Inc (NAS:IRON) » Definitions » ROIC %

IRON (Disc Medicine) ROIC % : -2,052.07% (As of Sep. 2024)


View and export this data going back to 2021. Start your Free Trial

What is Disc Medicine 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 %. Disc Medicine's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -2,052.07%.

As of today (2024-12-13), Disc Medicine's WACC % is 10.01%. Disc Medicine's ROIC % is -2128.21% (calculated using TTM income statement data). Disc Medicine earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Disc Medicine ROIC % Historical Data

The historical data trend for Disc Medicine'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.

Disc Medicine ROIC % Chart

Disc Medicine Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROIC %
-170.69 -216.02 -662.13 -1,264.37

Disc Medicine Quarterly Data
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 -2,839.34 -2,092.52 -1,804.76 -2,172.32 -2,052.07

Competitive Comparison of Disc Medicine's ROIC %

For the Biotechnology subindustry, Disc Medicine'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.


Disc Medicine's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Disc Medicine's ROIC % falls into.



Disc Medicine ROIC % Calculation

Disc Medicine'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 )
=-91.125 * ( 1 - -0.13% )/( (5.644 + 8.789)/ 2 )
=-91.2434625/7.2165
=-1,264.37 %

where

Disc Medicine'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 )
=-131.424 * ( 1 - -0.43% )/( (6.228 + 6.636)/ 2 )
=-131.9891232/6.432
=-2,052.07 %

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.


Disc Medicine  (NAS:IRON) 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, Disc Medicine's WACC % is 10.01%. Disc Medicine's ROIC % is -2128.21% (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.


Disc Medicine ROIC % Related Terms

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


Disc Medicine Business Description

Traded in Other Exchanges
N/A
Address
321 Arsenal Street, Suite 101, Watertown, MA, USA, 02472
Disc Medicine Inc is a clinical-stage biopharmaceutical company that is dedicated to transforming the lives of patients with hematologic disorders. The company is building a portfolio of inventive therapeutic candidates that affect fundamental pathways of red blood cell biology. Disc Medicine is committed to developing treatments that empower and bring hope to the many patients who suffer from hematologic disease. The Company has assembled a portfolio of clinical and preclinical product candidates that aim to modify fundamental biological pathways associated with the formation and function of red blood cells, specifically heme biosynthesis and iron homeostasis.
Executives
William Richard White director C/O AKERO THERAPEUTICS, INC., 170 HARBOR WAY 2ND FLOOR, SOUTH SAN FRANCISCO CA 94080
William Jacob Savage officer: Chief Medical Officer C/O DISC MEDICINE, INC., 321 ARSENAL STREET, SUITE 101, WATERTOWN MA 02472
Orbimed Advisors Llc director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Kevin Bitterman director C/O POLARIS VENTURE PARTNERS, 1000 WINTER STREET, SUITE 3350, WALTHAM MA 02451
Mona Ashiya director, 10 percent owner C/O SIERRA ONCOLOGY, INC., 2150 - 885 WEST GEORGIA STREET, VANCOUVER, BRITISH COLUMBIA Z4 V6C 3E8
Atlas Venture Fund X, L.p. 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Joanne Bryce officer: Chief Financial Officer C/O DISC MEDICINE, INC., 321 ARSENAL STREET, SUITE 101, WATERTOWN MA 02472
Rahul Khara officer: General Counsel C/O DISC MEDICINE, INC., 321 ARSENAL STREET, SUITE 101, WATERTOWN MA 02472
Brian Richard Macdonald officer: Chief Innovation Officer C/O DISC MEDICINE, INC., 321 ARSENAL STREET, SUITE 101, WATERTOWN MA 02472
Novo Holdings A/s 10 percent owner TUBORG HAVNEVEJ 19, HELLERUP G7 2900
Ai Dmi Llc 10 percent owner C/O ACCESS INDUSTRIES, INC., 40 WEST 57TH STREET, 28TH FLOOR, NEW YORK NY 10019
Atlas Venture Associates Opportunity I, Llc 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Associates Opportunity I, L.p. 10 percent owner 400 TECHNOLOGY SQUARE, 10TH FLOOR, CAMBRIDGE MA 02139
Atlas Venture Associates X, Llc 10 percent owner 400 TECH. SQ., 10TH FLOOR, CAMBRIDGE MA 02139
Access Industries Holdings Llc 10 percent owner C/O ACCESS INDUSTRIES MANAGEMENT, LLC., 730 FIFTH AVENUE, 20TH FLOOR, NEW YORK NY 10019