Quantum BioPharma (XCNQ:QNTM) ROIC % : -195.11% (As of Sep. 2024)

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What is Quantum BioPharma 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 %. Quantum BioPharma's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -195.11%.

As of today (2025-04-02), Quantum BioPharma's WACC % is 5.54%. Quantum BioPharma's ROIC % is -125.08% (calculated using TTM income statement data). Quantum BioPharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Quantum BioPharma ROIC % Historical Data

The historical data trend for Quantum BioPharma'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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Quantum BioPharma ROIC % Chart

Quantum BioPharma Annual Data

Trend

Aug15

Aug16

Aug17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-73.85

-101.82

-164.58

-136.46

-124.98

Quantum BioPharma 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															-95.49	-77.55	-91.33	-159.30	-195.11

Competitive Comparison of Quantum BioPharma's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Quantum BioPharma'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.

Quantum BioPharma's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Quantum BioPharma's ROIC % distribution charts can be found below:

* The bar in red indicates where Quantum BioPharma's ROIC % falls into.

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Quantum BioPharma ROIC % Calculation

Quantum BioPharma'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 )
=	-26.255 * ( 1 - 0% )	/	( (28.913	+	13.103)	/ 2 )
=	-26.255	/	21.008
=	-124.98 %

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	))
=	52.181	-	9.656	-	( 23.1	-	max(0, 10.637	-	24.249	+	23.1	))
=	28.913

	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	))
=	23.444	-	5.628	-	( 4.713	-	max(0, 6.126	-	14.872	+	4.713	))
=	13.103

Quantum BioPharma'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 )
=	-22.068 * ( 1 - 0% )	/	( (10.276	+	12.345)	/ 2 )
=	-22.068	/	11.3105
=	-195.11 %

where

	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	))
=	20.896	-	6.058	-	( 4.562	-	max(0, 6.914	-	13.735	+	4.562	))
=	10.276

	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	))
=	25.774	-	4.481	-	( 8.948	-	max(0, 4.986	-	18.753	+	8.948	))
=	12.345

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Quantum BioPharma (XCNQ:QNTM) 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, Quantum BioPharma's WACC % is 5.54%. Quantum BioPharma's ROIC % is -125.08% (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.

Quantum BioPharma ROIC % Related Terms

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Quantum BioPharma Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Quantum BioPharma Ltd (XCNQ:QNTM) » Definitions » ROIC %

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QNTM:USA 0K91:Germany

Address

199 Bay Street, Suite 4000, Toronto, ON, CAN, M5L 1A9

Website

https://www.fsdpharma.com

Quantum BioPharma Ltd formerly FSD Pharma Inc is a biopharmaceutical company developing three clinical candidates with the potential to address neuropsychiatric, neurodegenerative, and inflammatory disorders. Along with its subsidiaries, the group is focused on pharmaceutical research and development of its compound, FSD201, an ultra-micronized PEA, for the treatment of inflammatory diseases; Lucid-Psych is used in the treatment of mental health disorders and Lucid-MS is used in the treatment of neurodegenerative disorders. The company operates in two segments: Biopharmaceutical and Strategic Investments.