GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Solid Biosciences Inc (NAS:SLDB) » Definitions » ROIC %

SLDB (Solid Biosciences) ROIC % : -341.12% (As of Sep. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Solid Biosciences 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 %. Solid Biosciences's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -341.12%.

As of today (2024-12-13), Solid Biosciences's WACC % is 20.39%. Solid Biosciences's ROIC % is -266.99% (calculated using TTM income statement data). Solid Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Solid Biosciences ROIC % Historical Data

The historical data trend for Solid Biosciences'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.

Solid Biosciences ROIC % Chart

Solid Biosciences Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only -631.76 -336.47 -282.63 -268.22 -219.46

Solid Biosciences 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 -211.33 -203.69 -257.44 -281.88 -341.12

Competitive Comparison of Solid Biosciences's ROIC %

For the Biotechnology subindustry, Solid Biosciences'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.


Solid Biosciences's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Solid Biosciences's ROIC % falls into.



Solid Biosciences ROIC % Calculation

Solid Biosciences'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 )
=-104.315 * ( 1 - 0% )/( (51.563 + 43.501)/ 2 )
=-104.315/47.532
=-219.46 %

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))
=260.252 - 11.559 - ( 213.722 - max(0, 22.508 - 219.638+213.722))
=51.563

Solid Biosciences'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 )
=-140.728 * ( 1 - 0% )/( (38.891 + 43.618)/ 2 )
=-140.728/41.2545
=-341.12 %

where

Invested Capital(Q: Sep. 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))
=211.826 - 11.568 - ( 171.117 - max(0, 22.854 - 179.494+171.117))
=43.618

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.


Solid Biosciences  (NAS:SLDB) 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, Solid Biosciences's WACC % is 20.39%. Solid Biosciences's ROIC % is -266.99% (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.


Solid Biosciences ROIC % Related Terms

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


Solid Biosciences Business Description

Traded in Other Exchanges
N/A
Address
500 Rutherford Avenue, Third Floor, Charlestown, MA, USA, 02129
Solid Biosciences Inc is a life science company. It is engaged in the manufacturing of specialty and generic drugs. The company is involved in curing Duchenne muscular dystrophy (DMD), a genetic muscle-wasting disease predominantly affecting boys, with symptoms that usually manifest between three and five years of age. The company's pipeline products are the SB-001 and solid suit. The Company's singular focus is on developing treatments through gene therapy and other means for patients with neuromuscular and cardiac diseases. The company has categorized its programs into corrective therapies, disease-modifying therapies, and assistive devices.
Executives
David T Howton officer: See Remarks VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
Paul Herzich officer: Chief Technology Officer 500 RUTHERFORD AVENUE, THIRD FLOOR, CHARLESTOWN MA 02129
Jessie Hanrahan officer: Chief Regulatory Officer 500 RUTHERFORD AVENUE, THIRD FLOOR, CHARLESTOWN MA 02129
Alexander Cumbo director, officer: President and CEO 215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142
Gabriel Brooks officer: Chief Medical Officer C/O SOLID BIOSCIENCES INC., 500 RUTHERFORD AVENUE, THIRD FLOOR, CHARLESTOWN MA 02129
Clare Kahn director 141 PORTLAND STREET, FIFTH FLOOR, CAMBRIDGE MA 02139
Ilan Ganot director, officer: Chief Executive Officer C/O SOLID BIOSCIENCES, LLC, 141 PORTLAND STREET, FIFTH FLOOR, CAMBRIDGE MA 02139
Ra Capital Healthcare Fund Lp director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Perceptive Life Sciences Master Fund Ltd director, 10 percent owner C/O PERCEPTIVE ADVISORS LLC, 51 ASTOR PLACE, 10TH FLOOR, NEW YORK NY 10003
Kevin Tan officer: CFO & Treasurer 20 HICKORY ROAD, WELLESLEY MA 02482
Jennifer Marlowe officer: CSO, FA & Cardiac 500 RUTHERFORD AVENUE, THIRD FLOOR, CHARLESTOWN MA 02129
Carl Ashley Morris officer: Chief Scientific Officer C/O SOLID BIOSCIENCES, LLC, 141 PORTLAND STREET, FIFTH FLOOR, CAMBRIDGE MA 02139
Georgia Keresty director C/O ASPEN TECHNOLOGY, INC., 20 CROSBY DRIVE, BEDFORD MA 01730
Ian F Smith director C/O ACORDA THERAPEUTICS, INC., 420 SAW MILL RIVER ROAD, ARDSLEY NY 10502
Ra Capital Nexus Fund, L.p. director, 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116