CTT Pharmaceutical Holdings (CTT Pharmaceutical Holdings) ROC % : -17,440.00% (As of Jun. 2018)

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What is CTT Pharmaceutical Holdings 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 %. CTT Pharmaceutical Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2018 was -17,440.00%.

As of today (2024-05-28), CTT Pharmaceutical Holdings's WACC % is 0.00%. CTT Pharmaceutical Holdings's ROC % is 0.00% (calculated using TTM income statement data). CTT Pharmaceutical Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CTT Pharmaceutical Holdings ROC % Historical Data

The historical data trend for CTT Pharmaceutical Holdings'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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CTT Pharmaceutical Holdings ROC % Chart

CTT Pharmaceutical Holdings Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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-35.06

-31.91

-47.59

-165.54

CTT Pharmaceutical Holdings Quarterly Data
	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Mar17	Jun17	Mar18	Jun18
ROC %	Get a 7-Day Free Trial															-2,192.00	-448.00	-	-1,536.00	-17,440.00

CTT Pharmaceutical Holdings ROC % Calculation

CTT Pharmaceutical Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-1.446 * ( 1 - 0% )	/	( (1.412	+	0.335)	/ 2 )
=	-1.446	/	0.8735
=	-165.54 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	1.662	-	0.169	-	( 0.081	-	max(0, 0.169	-	1.05	+	0.081	))
=	1.412

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	0.644	-	0.308	-	( 0.001	-	max(0, 0.308	-	0.644	+	0.001	))
=	0.335

CTT Pharmaceutical Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2018 is calculated as:

	ROC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2018 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	-4.36 * ( 1 - 0% )	/	( (0.025	+	0.025)	/ 2 )
=	-4.36	/	0.025
=	-17,440.00 %

where

	Invested Capital		(Q: Mar. 2018 )
=	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	))
=	0.156	-	0.258	-	( 0.106	-	max(0, 0.283	-	0.156	+	0.106	))
=	0.025

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	0.996	-	0.268	-	( 0.996	-	max(0, 0.293	-	0.996	+	0.996	))
=	0.025

Note: The Operating Income data used here is four times the quarterly (Jun. 2018) data.

CTT Pharmaceutical Holdings (OTCPK:CTTH) 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, CTT Pharmaceutical Holdings's WACC % is 0.00%. CTT Pharmaceutical Holdings's ROC % is 0.00% (calculated using TTM income statement data). CTT Pharmaceutical Holdings 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.

CTT Pharmaceutical Holdings ROC % Related Terms

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CTT Pharmaceutical Holdings (CTT Pharmaceutical Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » CTT Pharmaceutical Holdings Inc (OTCPK:CTTH) » Definitions » ROC %

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Address

1100 – 1111 Melville Street, Vancouver, BC, CAN, V6E 3V6

Website

https://www.cttpharmaceuticals.com

CTT Pharmaceutical Holdings Inc is a development stage company specializing in drug delivery systems technology within the pharmaceutical industry. It focuses on fast-dissolving drug delivery systems through the development of oral delivery thin wafers. The thin wafers are infused with both natural and synthetic cannabis extracts to deliver treatment as an alternative to smoking and ingestion. Its products include Medwafe, Cannawafe, Vetwafe, and others.

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