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Wuhan YZY Biopharma Co (HKSE:02496) ROIC % : -89.27% (As of Dec. 2023)


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What is Wuhan YZY Biopharma Co 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 %. Wuhan YZY Biopharma Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -89.27%.

As of today (2024-05-31), Wuhan YZY Biopharma Co's WACC % is 10.01%. Wuhan YZY Biopharma Co's ROIC % is -89.27% (calculated using TTM income statement data). Wuhan YZY Biopharma Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Wuhan YZY Biopharma Co ROIC % Historical Data

The historical data trend for Wuhan YZY Biopharma Co'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.

Wuhan YZY Biopharma Co ROIC % Chart

Wuhan YZY Biopharma Co Annual Data
Trend Dec21 Dec22 Dec23
ROIC %
-115.24 -112.92 -89.27

Wuhan YZY Biopharma Co Semi-Annual Data
Dec21 Dec22 Dec23
ROIC % -115.24 -112.92 -89.27

Competitive Comparison of Wuhan YZY Biopharma Co's ROIC %

For the Biotechnology subindustry, Wuhan YZY Biopharma Co'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.


Wuhan YZY Biopharma Co's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Wuhan YZY Biopharma Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Wuhan YZY Biopharma Co's ROIC % falls into.



Wuhan YZY Biopharma Co ROIC % Calculation

Wuhan YZY Biopharma Co'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 )
=-207.873 * ( 1 - 0% )/( (227.198 + 238.52)/ 2 )
=-207.873/232.859
=-89.27 %

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))
=338.188 - 8.255 - ( 223.924 - max(0, 164.112 - 266.847+223.924))
=227.198

Wuhan YZY Biopharma Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-207.873 * ( 1 - 0% )/( (227.198 + 238.52)/ 2 )
=-207.873/232.859
=-89.27 %

where

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))
=338.188 - 8.255 - ( 223.924 - max(0, 164.112 - 266.847+223.924))
=227.198

Note: The Operating Income data used here is one times the annual (Dec. 2023) 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.


Wuhan YZY Biopharma Co  (HKSE:02496) 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, Wuhan YZY Biopharma Co's WACC % is 10.01%. Wuhan YZY Biopharma Co's ROIC % is -89.27% (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.


Wuhan YZY Biopharma Co ROIC % Related Terms

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Wuhan YZY Biopharma Co (HKSE:02496) Business Description

Traded in Other Exchanges
N/A
Address
No. 666 Gaoxin Road, East Lake High Tech, Development Zone, Hubei Province, Wuhan, CHN
Wuhan YZY Biopharma Co Ltd is a biotechnology company specifically involved in developing bispecific antibody based therapies to treat cancer or cancer-associated complications, cancer and age-related ophthalmologic diseases to address medical demands in oncology and aging-related ophthalmologic disease areas, The Company has been operating in one reportable segment, being the discovering, developing and commercializing new class of innovative medicines in respect to anti-tumor bispecific antibody.
Executives
Dragon Merit Holdings Limited 2201 Interest of corporation controlled by you
Robust Sun Holdings Limited 2201 Interest of corporation controlled by you
Cspc Pharmaceutical Group Limited 2201 Interest of corporation controlled by you
Shi Yao Ji Tuan En Bi Pu Yao Ye You Xian Gong Si 2101 Beneficial owner
He Bei Yi Er Qi Ye Guan Li Zi Xun You Xian Gong Si 2201 Interest of corporation controlled by you
Ning Bo Mei Shan Bao Shui Gang Qu Guang Rui Hong Xiang Gu Quan Tou Zi He Huo Qi Ye You Xian He Huo 2101 Beneficial owner
Guo Xin Si Chuang Tou Zi Ji Jin Guan Li Bei Jing You Xian Gong Si 2201 Interest of corporation controlled by you
Guo Hong Wei
Nan Jing Cai Zhi Er Hao Qi Ye Guan Li He Huo Qi Ye You Xian He Huo 2101 Beneficial owner
Nan Ning Hui You Xing Yao Gu Quan Tou Zi Ji Jin He Huo Qi Ye You Xian He Huo
Nan Ning Yao You Shang Wu Zi Xun He Huo Qi Ye You Xian He Huo
Wen Zhi Cheng
Tong De Qian Yuan Bei Jing Tou Zi Guan Li You Xian Gong Si
Wang Hongjie 2201 Interest of corporation controlled by you
Wu Shangzhi 2201 Interest of corporation controlled by you

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