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4D Molecular Therapeutics (4D Molecular Therapeutics) ROIC % : -211.58% (As of Mar. 2024)


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What is 4D Molecular Therapeutics ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 4D Molecular Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -211.58%.

As of today (2024-05-16), 4D Molecular Therapeutics's WACC % is 22.96%. 4D Molecular Therapeutics's ROIC % is -232.80% (calculated using TTM income statement data). 4D Molecular Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


4D Molecular Therapeutics ROIC % Historical Data

The historical data trend for 4D Molecular Therapeutics's ROIC % 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.

* Premium members only.

4D Molecular Therapeutics ROIC % Chart

4D Molecular Therapeutics Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial -470.43 -475.15 -125.92 -150.82 -246.44

4D Molecular Therapeutics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -282.32 -326.08 -148.99 -351.78 -211.58

Competitive Comparison of 4D Molecular Therapeutics's ROIC %

For the Biotechnology subindustry, 4D Molecular Therapeutics's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


4D Molecular Therapeutics's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, 4D Molecular Therapeutics's ROIC % distribution charts can be found below:

* The bar in red indicates where 4D Molecular Therapeutics's ROIC % falls into.



4D Molecular Therapeutics ROIC % Calculation

4D Molecular Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-112.867 * ( 1 - 0% )/( (44.874 + 46.725)/ 2 )
=-112.867/45.7995
=-246.44 %

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))
=261.846 - 12.192 - ( 213.554 - max(0, 15.731 - 220.511+213.554))
=44.874

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))
=339.891 - 15.529 - ( 288.232 - max(0, 18.951 - 296.588+288.232))
=46.725

4D Molecular Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-152.544 * ( 1 - 0% )/( (46.725 + 97.468)/ 2 )
=-152.544/72.0965
=-211.58 %

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))
=339.891 - 15.529 - ( 288.232 - max(0, 18.951 - 296.588+288.232))
=46.725

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.


4D Molecular Therapeutics  (NAS:FDMT) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, 4D Molecular Therapeutics's WACC % is 22.96%. 4D Molecular Therapeutics's ROIC % is -232.80% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


4D Molecular Therapeutics ROIC % Related Terms

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4D Molecular Therapeutics (4D Molecular Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
5858 Horton Street, Suite 455, Emeryville, CA, USA, 94608
4D Molecular Therapeutics Inc a clinical-stage gene therapy company engaged in the development of product candidates using targeted and evolved AAV vectors. It has built portfolio of gene therapy product candidates focused in three therapeutic areas: ophthalmology (intravitreal vector), cardiology (intravenous vector) and pulmonology (aerosol vector). It has three product candidates in clinical trials: 4D-125 for the treatment of X-linked retinitis pigmentosa in a Phase 1/2 clinical trial, 4D-110 for the treatment of choroideremia in a Phase 1 clinical trial, and 4D-310 for the treatment of Fabry disease in a Phase 1/2 clinical trial. Its two IND candidates are 4D-150 for the treatment of wet age-related macular degeneration, and 4D-710 for the treatment of cystic fibrosis lung disease.
Executives
David Kirn director, officer: Chief Executive Officer C/O 4D MOLECULAR THERAPEUTICS INC., 5858 HORTON STREET #455, EMERYVILLE CA 94608
Viking Global Investors Lp 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Uneek Mehra officer: See Remarks C/O MYOVANT SCIENCES INC., 2000 SIERRA POINT PARKWAY, 9TH FLOOR, BRISBANE CA 94005
Rose Sharon Shabet 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Viking Global Opportunities Parent Gp Llc 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Ole Andreas Halvorsen 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
David C. Ott 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Viking Global Opportunities Portfolio Gp Llc 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Viking Global Opportunities Gp Llc 10 percent owner 55 RAILROAD AVENUE, GREENWICH CT 06830
Viking Global Opportunities Illiquid Investments Sub-master Lp 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Jacob Chacko director C/O IGNYTA, INC., 11095 FLINTKOTE AVE., SUITE D, SAN DIEGO CA 92121
Scott Bizily officer: Chief Legal and HR Officer C/O 4D MOLECULAR THERAPEUTICS, INC., 5858 HORTON STREET #455, EMERYVILLE CA 94608
Robert Young Kim officer: Chief Medical Officer C/O 4D MOLECULAR THERAPEUTICS, INC., 5858 HORTON STREET #455, EMERYVILLE CA 94608
Noriyuki Kasahara director C/O 4D MOLECULAR THERAPEUTICS, INC., 5858 HORTON STREET #455, EMERYVILLE CA 94608
Bvf I Gp Llc other: See Explanation of Responses 44 MONTGOMERY ST., 40TH FLOOR, SAN FRANCISCO CA 94104