AlloVir (AlloVir) ROC % : -733.45% (As of Mar. 2024)

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What is AlloVir ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. AlloVir's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -733.45%.

As of today (2024-06-05), AlloVir's WACC % is 4.11%. AlloVir's ROC % is -516.09% (calculated using TTM income statement data). AlloVir earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AlloVir ROC % Historical Data

The historical data trend for AlloVir's ROC % 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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AlloVir ROC % Chart

AlloVir Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-275.77

-435.57

-544.44

-362.47

-554.49

AlloVir Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-383.63	-448.48	-425.19	-544.49	-733.45

AlloVir ROC % Calculation

AlloVir's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-181.331 * ( 1 - 0.07% )	/	( (47.608	+	17.751)	/ 2 )
=	-181.2040683	/	32.6795
=	-554.49 %

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	))
=	277.079	-	10.757	-	( 233.795	-	max(0, 24.338	-	243.052	+	233.795	))
=	47.608

	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	))
=	190.796	-	13.777	-	( 183.943	-	max(0, 28.367	-	187.635	+	183.943	))
=	17.751

AlloVir's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-91.34 * ( 1 - 0% )	/	( (17.751	+	7.156)	/ 2 )
=	-91.34	/	12.4535
=	-733.45 %

where

	Invested Capital		(Q: 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	))
=	190.796	-	13.777	-	( 183.943	-	max(0, 28.367	-	187.635	+	183.943	))
=	17.751

	Invested Capital		(Q: Mar. 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	))
=	144.143	-	3.161	-	( 140.53	-	max(0, 7.656	-	141.482	+	140.53	))
=	7.156

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

AlloVir (NAS:ALVR) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, AlloVir's WACC % is 4.11%. AlloVir's ROC % is -516.09% (calculated using TTM income statement data). AlloVir earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

AlloVir ROC % Related Terms

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AlloVir (AlloVir) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » AlloVir Inc (NAS:ALVR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1100 Winter Street, Waltham, MA, USA, 02451

Website

https://www.allovir.com

AlloVir Inc is a late clinical-stage cell therapy company. It is developing allogeneic T-cell therapies to treat and prevent devastating viral diseases. The firm's pipeline includes ALVR106, ALVR109, ALVR108, and others. The company's product candidate, Viralym-M, is a multi-VST therapy targeting five viruses namely BK virus, cytomegalovirus, adenovirus, Epstein-Barr virus, and human herpesvirus 6.

Executives

Vikas Sinha	director, 10 percent owner, officer: See Remarks	C/O ALEXION PHARMACUETICALS, INC., 352 KNOTTER DRIVE, CHESHIRE CT 06410
Diana Brainard	director	C/O ALLOVIR, INC., 139 MAIN STREET, SUITE 500, CAMBRIDGE MA 02142
Edward Miller	officer: General Counsel	C/O ALEXION PHARMACEUTICALS, INC, 352 KNOTTER DRIVE, CHESHIRE CT 06410
Brett R Hagen	officer: Chief Accounting Officer	200 TECHNOLOGY SQUARE, 4TH FLOOR, CAMBRIDGE MA 02139
Gilead Sciences Inc	10 percent owner	333 LAKESIDE DR, FOSTER CITY CA 94404
Cintia Piccina	officer: Chief Commercial Officer	60 JUBILEE AVENUE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 X0 OX14 4R
Derek N. Adams	director	ALLOVIR, INC., 1100 WINTER STREET, WALTHAM MA 02451
Van Beek Jeroen B	officer: Chief Commercial Officer	C/O TRICIDA, INC., 7000 SHORELINE COURT, SUITE 201, SOUTH SAN FRANCISCO CA 94080
Ercem Atillasoy	officer: See Remarks	C/O ALLOVIR, INC., 139 MAIN STREET, SUITE 500, CAMBRIDGE MA 02142
David Hallal	director, 10 percent owner, officer: Chief Executive Officer	C/O ALEXION PHARMACEUTICALS, INC, 352 KNOTTER DRIVE, CHESHIRE CT 06410
F2 - Tpo Investments Llc	director, 10 percent owner	C/O SINGER, MCKEON INC., 8 W 38TH ST SUITE 1001, NEW YORK NY 10018
F2 Bioscience Av 2022 Llc	director, 10 percent owner	8 WEST 38TH STREET, SUITE 1001, NEW YORK NY 10018
Capital I 2020 F2	director, 10 percent owner	8 WEST 38TH STREET, SUITE 1001, NEW YORK NY 10018
F2 Mc, Llc	director, 10 percent owner	8 WEST 38TH STREET, SUITE 1001, NEW YORK NY 10018
Globeways Holdings Ii Ltd	director, 10 percent owner	C/O SINGER, MCKEON INC., 8 W 38TH ST. STE. 1001, NEW YORK NY 10018