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TBRIF (Therma Bright) ROIC % : -78.63% (As of Jul. 2024)


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What is Therma Bright 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 %. Therma Bright's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was -78.63%.

As of today (2024-12-14), Therma Bright's WACC % is 14.02%. Therma Bright's ROIC % is -37.86% (calculated using TTM income statement data). Therma Bright earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Therma Bright ROIC % Historical Data

The historical data trend for Therma Bright'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.

Therma Bright ROIC % Chart

Therma Bright Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -753.33 -4,468.40 -1,591.18 -323.65 -51.90

Therma Bright Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 -418.88 -18.88 -11.70 -32.68 -78.63

Competitive Comparison of Therma Bright's ROIC %

For the Medical Devices subindustry, Therma Bright'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.


Therma Bright's ROIC % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Therma Bright's ROIC % distribution charts can be found below:

* The bar in red indicates where Therma Bright's ROIC % falls into.



Therma Bright ROIC % Calculation

Therma Bright's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2024 is calculated as:

ROIC % (A: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2023 ) + Invested Capital (A: Jul. 2024 ))/ count )
=-0.901 * ( 1 - 0% )/( (1.384 + 2.088)/ 2 )
=-0.901/1.736
=-51.90 %

where

Therma Bright's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

ROIC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=-1.948 * ( 1 - 0% )/( (2.867 + 2.088)/ 2 )
=-1.948/2.4775
=-78.63 %

where

Note: The Operating Income data used here is four times the quarterly (Jul. 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.


Therma Bright  (OTCPK:TBRIF) 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, Therma Bright's WACC % is 14.02%. Therma Bright's ROIC % is -37.86% (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.


Therma Bright ROIC % Related Terms

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Therma Bright Business Description

Traded in Other Exchanges
Address
345 Danforth Avenue, Toronto, ON, CAN, M4K 1N7
Therma Bright Inc is a developer and partner in a range of proprietary diagnostic and medical device technologies focused on providing consumers and medical professionals with solutions to address important medical and healthcare challenges. The Company is developing, acquiring, manufacturing and marketing proprietary healthcare and medical devices for the consumer and institutional marketplace focused on 3 key strategic areas: respiratory disease, vascular health, and consumer medical devices.

Therma Bright Headlines