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Scilex Holding Co (Scilex Holding Co) ROIC % : -67.65% (As of Mar. 2024)


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What is Scilex Holding Co 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 %. Scilex Holding Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -67.65%.

As of today (2024-05-19), Scilex Holding Co's WACC % is 6.75%. Scilex Holding Co's ROIC % is -82.82% (calculated using TTM income statement data). Scilex Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Scilex Holding Co ROIC % Historical Data

The historical data trend for Scilex Holding Co'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.

Scilex Holding Co ROIC % Chart

Scilex Holding Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
- -39.84 -35.59 -59.26 -94.93

Scilex Holding Co Quarterly Data
Dec19 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -164.87 -115.08 -117.40 -43.71 -67.65

Competitive Comparison of Scilex Holding Co's ROIC %

For the Drug Manufacturers - General subindustry, Scilex Holding Co'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.


Scilex Holding Co's ROIC % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Scilex Holding Co's ROIC % falls into.



Scilex Holding Co ROIC % Calculation

Scilex Holding Co'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 )
=-105.431 * ( 1 - -0.01% )/( (57.928 + 164.207)/ 2 )
=-105.4415431/111.0675
=-94.93 %

where

Scilex Holding Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-105.476 * ( 1 - 0% )/( (164.207 + 147.629)/ 2 )
=-105.476/155.918
=-67.65 %

where

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


Scilex Holding Co  (NAS:SCLX) 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, Scilex Holding Co's WACC % is 6.75%. Scilex Holding Co's ROIC % is -82.82% (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.


Scilex Holding Co ROIC % Related Terms

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Scilex Holding Co (Scilex Holding Co) Business Description

Traded in Other Exchanges
N/A
Address
960 San Antonio Road, Palo Alto, CA, USA, 94303
Scilex Holding Co is engaged in the development and commercialization of non-opioid pain management products. The company's lead product ZTlido.
Executives
Sclx Stock Acquisition Jv Llc 10 percent owner 960 SAN ANTONIO ROAD, PALO ALTO CA 94303
Jay Chun director C/O SCILEX HOLDING COMPANY, 960 SAN ANTONIO ROAD, PALO ALTO CA 94303
Yue Alexander Wu director C/O SORRENTO THERAPEUTICS, INC., 9380 JUDICIAL DRIVE, SAN DIEGO CA 92121
Stephen Hoi Ma officer: Chief Financial Officer C/O SCILEX HOLDING COMPANY, 960 SAN ANTONIO ROAD, PALO ALTO CA 94303
Tommy G Thompson director 7711 CARONDELET, ST. LOUIS MO 63105
Tien-li Lee director C/O SCILEX HOLDING COMPANY, 960 SAN ANTONIO ROAD, PALO ALTO CA 94303
Sorrento Therapeutics, Inc. 10 percent owner 4955 DIRECTORS PLACE, SAN DIEGO CA 92121
David Lemus director C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTOR'S PLACE, SAN DIEGO CA 92121
Dorman Followwill director C/O SORRENTO THERAPEUTICS, INC., 4955 DIRECTOR'S PLACE, SAN DIEGO CA 92121
Henry Ji director, officer: Executive Chairperson 5370 RUETTE DE MER, SAN DIEGO CA 92130
Jaisim Shah director, officer: See Remarks C/O PROTINE DESIGN LAB, 37481 MARSTEN DR, NEWARK CA 94560
Elizabeth Czerepak officer: See Remarks 201 ROUTE 17 NORTH, RUTHERFORD NJ 07070
Laura Hamill director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Suneel G Kaji director 25/28 OLD BURLINGTON STREET, LONDON X0 W1S 3AN
Steve Myint director C/O VICKERS VANTAGE CORP. I, 1 HARBOURFRONT AVENUE, #16-06, SINGAPORE U0 098632

Scilex Holding Co (Scilex Holding Co) Headlines

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