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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. X4 Pharmaceuticals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -439.68%.
As of today (2024-06-05), X4 Pharmaceuticals's WACC % is 10.11%. X4 Pharmaceuticals's ROC % is -351.40% (calculated using TTM income statement data). X4 Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for X4 Pharmaceuticals'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.
X4 Pharmaceuticals Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
ROC % | Get a 7-Day Free Trial | -242.55 | -151.29 | -186.80 | -242.72 | -305.31 |
X4 Pharmaceuticals 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 | -351.71 | -322.70 | -333.92 | -301.04 | -439.68 |
X4 Pharmaceuticals'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 ) |
= | -107.522 * ( 1 - -0.08% ) | / | ( (36.014 | + | 34.476) | / 2 ) |
= | -107.6080176 | / | 35.245 | |||
= | -305.31 % |
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 | )) |
= | 155.586 | - | 13.219 | - | ( 121.718 | - | max(0, 22.324 | - | 128.677 | + | 121.718 | )) |
= | 36.014 |
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 | )) |
= | 147.258 | - | 13.568 | - | ( 114.216 | - | max(0, 22.862 | - | 122.076 | + | 114.216 | )) |
= | 34.476 |
X4 Pharmaceuticals'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 ) |
= | -149.156 * ( 1 - -0.04% ) | / | ( (34.476 | + | 33.399) | / 2 ) |
= | -149.2156624 | / | 33.9375 | |||
= | -439.68 % |
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 | )) |
= | 147.258 | - | 13.568 | - | ( 114.216 | - | max(0, 22.862 | - | 122.076 | + | 114.216 | )) |
= | 34.476 |
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 | )) |
= | 112.182 | - | 14.991 | - | ( 80.869 | - | max(0, 23.541 | - | 87.333 | + | 80.869 | )) |
= | 33.399 |
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.
X4 Pharmaceuticals (NAS:XFOR) 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, X4 Pharmaceuticals's WACC % is 10.11%. X4 Pharmaceuticals's ROC % is -351.40% (calculated using TTM income statement data). X4 Pharmaceuticals 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.
Thank you for viewing the detailed overview of X4 Pharmaceuticals's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paula Ragan | director, officer: President and CEO | C/O X4 PHARMACEUTICALS, INC., 955 MASSACHUSETTS AVE., 4TH FLOOR, CAMBRIDGE MA 02139 |
Mark Baldry | officer: Chief Commercial Officer | C/O AMICUS THERAPEUTICS, 1 CEDAR BROOK DRIVE, CRANBURY NJ 08512 |
Arthur Taveras | officer: Chief Scientific Officer | C/O X4 PHARMACEUTICALS, INC., 61 NORTH BEACON STREET, 4TH FLOOR, BOSTON MA 02134 |
Mary Dibiase | officer: Chief Operating Officer | 61 NORTH BEACON STREET, 4TH FLOOR, BOSTON MA 02134 |
Adam S. Mostafa | officer: See Remarks | C/O X4 PHARMACEUTICALS INC., 61 NORTH BEACON STREET, 4TH FLOOR, BOSTON MA 02134 |
Keith Woods | director | C/O X4 PHARMACEUTICALS INC., 61 NORTH BEACON STREET 4TH FLOOR, BOSTON MA 02134 |
Michael S Wyzga | director | RADIUS HEALTH, INC., 201 BROADWAY, 6TH FLOOR, CAMBRIDGE MA 02139 |
Christophe Arbet-engels | officer: Chief Medical Officer | C/O MILLENDO THERAPEUTICS, INC., 110 MILLER AVENUE, SUITE 100, ANN ARBOR MI 48104 |
Murray Stewart | director | C/O NOVELION THERAPEUTICS INC., 1800-510 WEST GEORGIA STREET, VANCOUVER A1 V6B OM3 |
Craecker Francoise De | director | 61 NORTH BEACON STREET, 4TH FLOOR, BOSTON MA 02134 |
Derek M Meisner | officer: General Counsel | C/O GENOCEA BIOSCIENCES, INC., 100 ACORN PARK DRIVE, 5TH FLOOR, CAMBRIDGE MA 02140 |
Diego Cadavid | officer: Chief Medical Officer | C/O FULCRUM THERAPEUTICS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
Alison Frances Lawton | director | 39 ROBINSON ROAD, LEXINGTON MA 02420 |
Renato Skerlj | officer: Chief Scientific Officer | C/O X4 PHARMACEUTICALS, INC., 955 MASSACHUSETTS AVENUE, 4TH FLOOR, CAMBRIGE MA 02139 |
William Aliski | director | C/O ULTRAGENYX PHARMACEUTICAL INC., 60 LEVERONI COURT, NOVATO CA 94949 |
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