Revelation Biosciences (FRA:56U0) ROC % : -249.02% (As of Mar. 2024)

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What is Revelation Biosciences 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 %. Revelation Biosciences's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -249.02%.

As of today (2024-05-29), Revelation Biosciences's WACC % is 10.56%. Revelation Biosciences's ROC % is -233.86% (calculated using TTM income statement data). Revelation Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Revelation Biosciences ROC % Historical Data

The historical data trend for Revelation Biosciences'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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Revelation Biosciences ROC % Chart

Revelation Biosciences Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-8,135.38

-692.34

-278.97

Revelation Biosciences Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial								-135.86	-156.59	-345.34	-291.69	-249.02

Revelation Biosciences ROC % Calculation

Revelation Biosciences'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 )
=	-7.938 * ( 1 - 0% )	/	( (2.833	+	2.858)	/ 2 )
=	-7.938	/	2.8455
=	-278.97 %

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	))
=	5.195	-	1.454	-	( 4.959	-	max(0, 4.202	-	5.11	+	4.959	))
=	2.833

	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	))
=	11.199	-	2.304	-	( 10.997	-	max(0, 5.103	-	11.14	+	10.997	))
=	2.858

Revelation Biosciences'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 )
=	-7 * ( 1 - 0% )	/	( (2.858	+	2.764)	/ 2 )
=	-7	/	2.811
=	-249.02 %

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	))
=	11.199	-	2.304	-	( 10.997	-	max(0, 5.103	-	11.14	+	10.997	))
=	2.858

	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	))
=	13.526	-	2.118	-	( 13.388	-	max(0, 4.81	-	13.454	+	13.388	))
=	2.764

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

Revelation Biosciences (FRA:56U0) 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, Revelation Biosciences's WACC % is 10.56%. Revelation Biosciences's ROC % is -233.86% (calculated using TTM income statement data). Revelation Biosciences 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.

Revelation Biosciences ROC % Related Terms

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Revelation Biosciences (FRA:56U0) Business Description

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REVB:USA 56U1:Germany

Address

4660 La Jolla Village Drive, Suite 100, San Diego, CA, USA, 92122

Website

https://www.revbiosciences.com

Revelation Biosciences Inc is a clinical-stage life sciences company focused on the development of immunologic-based therapies for the prevention and treatment of disease. It has several product candidates in development. REVTx-99, the lead therapeutic candidate, is an intranasal immunomodulator to prevent or treat infections caused by various respiratory viruses such as SARS-CoV-2, including its variants, influenza A and B, parainfluenza, rhinovirus, and RSV. REVTx-99 is also being developed for other indications such as: allergic rhinitis and chronic nasal congestion. REVTx-200 is an intranasal immunomodulator adjunct to be used in combination with an intramuscular vaccination for more complete immunity. REVTx-200 is based on the same technology used in REVTx-99.

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