Labiana Health (XMAD:LAB) ROC % : -10.37% (As of Dec. 2022)

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What is Labiana Health 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 %. Labiana Health's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was -10.37%.

As of today (2024-06-05), Labiana Health's WACC % is 0.00%. Labiana Health's ROC % is 0.00% (calculated using TTM income statement data). Labiana Health earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Labiana Health ROC % Historical Data

The historical data trend for Labiana Health'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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Labiana Health ROC % Chart

Labiana Health Annual Data

Trend

Dec20

Dec21

Dec22

ROC %

9.53

1.17

-4.97

Labiana Health Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22
ROC %	-	-	0.65	-10.37

Labiana Health ROC % Calculation

Labiana Health's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-2.38 * ( 1 - -16.21% )	/	( (58.725	+	52.676)	/ 2 )
=	-2.765798	/	55.7005
=	-4.97 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	68.367	-	10.683	-	( 3.295	-	max(0, 30.452	-	29.411	+	3.295	))
=	58.725

	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	))
=	60.779	-	14.411	-	( 2.544	-	max(0, 35.065	-	28.757	+	2.544	))
=	52.676

Labiana Health's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-5.05 * ( 1 - -13.48% )	/	( (57.898	+	52.676)	/ 2 )
=	-5.73074	/	55.287
=	-10.37 %

where

	Invested Capital		(Q: Jun. 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	))
=	75.163	-	15.186	-	( 6.052	-	max(0, 37.337	-	39.416	+	6.052	))
=	57.898

	Invested Capital		(Q: 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	))
=	60.779	-	14.411	-	( 2.544	-	max(0, 35.065	-	28.757	+	2.544	))
=	52.676

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

Labiana Health (XMAD:LAB) 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, Labiana Health's WACC % is 0.00%. Labiana Health's ROC % is 0.00% (calculated using TTM income statement data). Labiana Health 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.

Labiana Health ROC % Related Terms

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Labiana Health (XMAD:LAB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Labiana Health SA (XMAD:LAB) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Avenida Europa, 34 1st D, Pozuelo de Alarcon, Madrid, ESP, 28023

Website

https://www.labiana.com

Labiana Health SA is a manufacturer of pharmacological products for veterinary use. The company's activities include GMP manufacturer for EU animal and human health industries, manufacturer specialized in sterile and lyophilized dosage forms, source of development, acquisition, and licensing of molecules such as Fosfomycin Trometamol.