Rapid Dose Therapeutics (XCNQ:DOSE) ROIC % : -142.94% (As of Nov. 2023)

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What is Rapid Dose Therapeutics 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 %. Rapid Dose Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2023 was -142.94%.

As of today (2024-05-10), Rapid Dose Therapeutics's WACC % is -0.79%. Rapid Dose Therapeutics's ROIC % is -103.18% (calculated using TTM income statement data). Rapid Dose Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rapid Dose Therapeutics ROIC % Historical Data

The historical data trend for Rapid Dose Therapeutics'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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Rapid Dose Therapeutics ROIC % Chart

Rapid Dose Therapeutics Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Feb19

Feb20

Feb21

Feb22

Feb23

ROIC %

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-427.48

-179.61

-29.75

-99.95

-108.68

Rapid Dose Therapeutics Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
ROIC %	Get a 7-Day Free Trial															-63.06	-139.50	-57.29	-73.91	-142.94

Competitive Comparison of Rapid Dose Therapeutics's ROIC %

For the Biotechnology subindustry, Rapid Dose Therapeutics'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.

Rapid Dose Therapeutics's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Rapid Dose Therapeutics's ROIC % falls into.

Rapid Dose Therapeutics ROIC % Calculation

Rapid Dose Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Feb. 2023 is calculated as:

	ROIC % (A: Feb. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2022 )	+	Invested Capital (A: Feb. 2023 ))	/ count )
=	-3.544 * ( 1 - 0% )	/	( (3.286	+	3.236)	/ 2 )
=	-3.544	/	3.261
=	-108.68 %

where

	Invested Capital		(A: Feb. 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	))
=	3.068	-	1.62	-	( 0.034	-	max(0, 2.452	-	0.614	+	0.034	))
=	3.286

	Invested Capital		(A: Feb. 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	))
=	2.247	-	3.292	-	( 0.028	-	max(0, 4.701	-	0.42	+	0.028	))
=	3.236

Rapid Dose Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Nov. 2023 is calculated as:

	ROIC % (Q: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Nov. 2023 ))	/ count )
=	-3.512 * ( 1 - 0% )	/	( (2.761	+	2.153)	/ 2 )
=	-3.512	/	2.457
=	-142.94 %

where

	Invested Capital		(Q: Aug. 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	))
=	2.097	-	3.372	-	( 0.203	-	max(0, 4.593	-	0.557	+	0.203	))
=	2.761

	Invested Capital		(Q: Nov. 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	))
=	1.994	-	3.774	-	( 0.166	-	max(0, 4.54	-	0.607	+	0.166	))
=	2.153

Note: The Operating Income data used here is four times the quarterly (Nov. 2023) data.

Rapid Dose Therapeutics (XCNQ:DOSE) 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, Rapid Dose Therapeutics's WACC % is -0.79%. Rapid Dose Therapeutics's ROIC % is -103.18% (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.

Rapid Dose Therapeutics ROIC % Related Terms

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Rapid Dose Therapeutics (XCNQ:DOSE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Rapid Dose Therapeutics Corp (XCNQ:DOSE) » Definitions » ROIC %

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RDTCF:USA

Address

1121 Walkers Line, Unit 3, Burlington, ON, CAN, L7N 2G4

Website

http://www.rapid-dose.com

Rapid Dose Therapeutics Corp is a Canadian biotechnology company revolutionizing drug delivery through innovation. The company's flagship product QuickStrip is a thin, orally dissolvable film, that can be infused with an infinite list of active ingredients (nutraceuticals, pharmaceuticals, vaccines, cannabis) that are delivered quickly into the bloodstream resulting in rapid onset of the active ingredient.

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