Silence Therapeutics (Silence Therapeutics) ROC % : -31.74% (As of Mar. 2024)

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What is Silence Therapeutics 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 %. Silence Therapeutics's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -31.74%.

As of today (2024-06-11), Silence Therapeutics's WACC % is 10.00%. Silence Therapeutics's ROC % is -132.52% (calculated using TTM income statement data). Silence Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Silence Therapeutics ROC % Historical Data

The historical data trend for Silence Therapeutics'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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Silence Therapeutics ROC % Chart

Silence Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-190.43

-125.91

-143.15

-211.52

-169.99

Silence Therapeutics Quarterly Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-186.17	-166.02	-135.33	-189.94	-31.74

Silence Therapeutics ROC % Calculation

Silence Therapeutics'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 )
=	-62.79 * ( 1 - 14% )	/	( (28.896	+	34.635)	/ 2 )
=	-53.9994	/	31.7655
=	-169.99 %

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	))
=	130.938	-	15.387	-	( 86.655	-	max(0, 26.727	-	117.766	+	86.655	))
=	28.896

	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	))
=	118.762	-	15.733	-	( 68.394	-	max(0, 22.492	-	102.558	+	68.394	))
=	34.635

Silence Therapeutics'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 )
=	-21.124 * ( 1 - 44.25% )	/	( (34.635	+	39.565)	/ 2 )
=	-11.77663	/	37.1
=	-31.74 %

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	))
=	118.762	-	15.733	-	( 68.394	-	max(0, 22.492	-	102.558	+	68.394	))
=	34.635

	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	))
=	246.987	-	13.325	-	( 194.097	-	max(0, 18.013	-	230.919	+	194.097	))
=	39.565

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

Silence Therapeutics (NAS:SLN) 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, Silence Therapeutics's WACC % is 10.00%. Silence Therapeutics's ROC % is -132.52% (calculated using TTM income statement data). Silence Therapeutics 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.

Silence Therapeutics ROC % Related Terms

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Silence Therapeutics (Silence Therapeutics) Business Description

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SLNCF:USA XRP2:Germany

Address

72 Hammersmith Road, London, GBR, W14 8TH

Website

https://www.silence-therapeutics.com

Silence Therapeutics PLC is a biotechnology company focused on discovering and developing novel molecules incorporating short-interfering ribonucleic acid. its pipeline products are; SLN360 therapy designed to temporarily block a specific gene's message that would otherwise trigger an unwanted effect. By silencing the LPA gene, the levels of Lp(a) are lowered, which in turn is expected to lower the risk of heart diseases, heart attacks, and strokes, and SLN124 therapy aims to temporarily silence TMPRSS6, a gene that prevents the liver from producing a particular hormone that controls iron levels in the body hepcidin. As hepcidin increases, iron levels in the blood are expected to decrease, which may increase the production of healthy red blood cells, thereby reducing anemia.