Cizzle Biotechnology Holdings (LSE:CIZ) ROIC % : -778.42% (As of Jun. 2024)

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What is Cizzle Biotechnology Holdings 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 %. Cizzle Biotechnology Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -778.42%.

As of today (2025-03-13), Cizzle Biotechnology Holdings's WACC % is 10.06%. Cizzle Biotechnology Holdings's ROIC % is -56.48% (calculated using TTM income statement data). Cizzle Biotechnology Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cizzle Biotechnology Holdings ROIC % Historical Data

The historical data trend for Cizzle Biotechnology Holdings'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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Cizzle Biotechnology Holdings ROIC % Chart

Cizzle Biotechnology Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-1,547.83

-683.58

-562.06

-72.32

-81.07

Cizzle Biotechnology Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial															-66.56	-48.14	-38.91	-90.45	-778.42

Competitive Comparison of Cizzle Biotechnology Holdings's ROIC %

For the Biotechnology subindustry, Cizzle Biotechnology Holdings'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.

Cizzle Biotechnology Holdings's ROIC % Distribution in the Biotechnology Industry

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

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

Cizzle Biotechnology Holdings ROIC % Calculation

Cizzle Biotechnology Holdings'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 )
=	-0.976 * ( 1 - 2.61% )	/	( (2.258	+	0.087)	/ 2 )
=	-0.9505264	/	1.1725
=	-81.07 %

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	))
=	2.785	-	0.049	-	( 0.478	-	max(0, 0.145	-	0.705	+	0.478	))
=	2.258

	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	))
=	1.693	-	0.099	-	( 1.557	-	max(0, 0.186	-	1.693	+	1.557	))
=	0.087

Cizzle Biotechnology Holdings'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: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-0.682 * ( 1 - 0.7% )	/	( (0.087	+	0)	/ 2 )
=	-0.677226	/	0.0435
=	-1,556.84 %

where

	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	))
=	1.693	-	0.099	-	( 1.557	-	max(0, 0.186	-	1.693	+	1.557	))
=	0.087

	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	))
=	0.923	-	0.129	-	( 0.816	-	max(0, 0.129	-	0.923	+	0.816	))
=	0

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Cizzle Biotechnology Holdings (LSE:CIZ) 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, Cizzle Biotechnology Holdings's WACC % is 10.06%. Cizzle Biotechnology Holdings's ROIC % is -56.48% (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.

Cizzle Biotechnology Holdings ROIC % Related Terms

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Cizzle Biotechnology Holdings Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

C/o SGH Secretaries Limited, 60 Gracechurch Street, 6th Floor, London, GBR, EC3V 0HR

Website

https://www.cizzlebiotechnology.com

Cizzle Biotechnology Holdings PLC is in the early stages of developing a blood test for the early detection of a majority of the different forms of lung cancer. Its proof-of-concept prototype test is based on the ability to detect a stable plasma biomarker, a variant of C1Z1 known as CIZ1B. C1Z1 is a naturally occurring cell nuclear protein involved in DNA replication, and the targeted C1Z1B variant is correlated with early stage lung cancer.