InNexus Biotechnology (InNexus Biotechnology) ROIC % : -13.15% (As of Mar. 2011)

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What is InNexus Biotechnology 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 %. InNexus Biotechnology's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2011 was -13.15%.

As of today (2024-06-22), InNexus Biotechnology's WACC % is 0.00%. InNexus Biotechnology's ROIC % is 0.00% (calculated using TTM income statement data). InNexus Biotechnology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

InNexus Biotechnology ROIC % Historical Data

The historical data trend for InNexus Biotechnology'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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InNexus Biotechnology ROIC % Chart

InNexus Biotechnology Annual Data

Trend

Jun01

Jun02

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

ROIC %

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-383.21

-238.52

-179.95

-186.70

-72.18

InNexus Biotechnology Quarterly Data
	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11
ROIC %	Get a 7-Day Free Trial															-48.23	-58.64	-17.61	-17.69	-13.15

Competitive Comparison of InNexus Biotechnology's ROIC %

For the Biotechnology subindustry, InNexus Biotechnology'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.

InNexus Biotechnology's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where InNexus Biotechnology's ROIC % falls into.

InNexus Biotechnology ROIC % Calculation

InNexus Biotechnology's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2010 is calculated as:

	ROIC % (A: Jun. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2009 )	+	Invested Capital (A: Jun. 2010 ))	/ count )
=	-3.788 * ( 1 - % )	/	( (3.951	+	6.545)	/ 2 )
=	-3.788	/	5.248
=	-72.18 %

where

	Invested Capital		(A: Jun. 2009 )
=	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	))
=	4.158	-	3.575	-	( 0.11	-	max(0, 3.578	-	0.21	+	0.11	))
=	3.951

	Invested Capital		(A: Jun. 2010 )
=	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	))
=	3.312	-	5.013	-	( 0	-	max(0, 8.255	-	0.009	+	0	))
=	6.545

InNexus Biotechnology's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2011 is calculated as:

	ROIC % (Q: Mar. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2010 )	+	Invested Capital (Q: Mar. 2011 ))	/ count )
=	-1.264 * ( 1 - % )	/	( (9.414	+	9.809)	/ 2 )
=	-1.264	/	9.6115
=	-13.15 %

where

	Invested Capital		(Q: Dec. 2010 )
=	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	))
=	3.313	-	2.665	-	( 0.098	-	max(0, 8.864	-	0.098	+	0.098	))
=	9.414

	Invested Capital		(Q: Mar. 2011 )
=	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	))
=	3.237	-	2.934	-	( 0.032	-	max(0, 9.541	-	0.035	+	0.032	))
=	9.809

Note: The Operating Income data used here is four times the quarterly (Mar. 2011) data.

InNexus Biotechnology (GREY:IXSBF) 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, InNexus Biotechnology's WACC % is 0.00%. InNexus Biotechnology's ROIC % is 0.00% (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.

InNexus Biotechnology ROIC % Related Terms

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InNexus Biotechnology (InNexus Biotechnology) Business Description

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Address

1055 West Georgia Street, 1500 Royal Centre, Vancouver, BC, CAN, V6E 4N7

Website

http://www.ixsbio.com

InNexus Biotechnology Inc is engaged in commercializing the next generation of monoclonal antibodies based on its DXL technology, which improves the potency of existing antibody products while opening new markets and disease applications.

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