Scopus BioPharma (Scopus BioPharma) ROIC % : -9,082.17% (As of Jun. 2023)

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What is Scopus BioPharma 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 %. Scopus BioPharma's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -9,082.17%.

As of today (2024-06-06), Scopus BioPharma's WACC % is 7.02%. Scopus BioPharma's ROIC % is -9019.31% (calculated using TTM income statement data). Scopus BioPharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Scopus BioPharma ROIC % Historical Data

The historical data trend for Scopus BioPharma'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.

Scopus BioPharma ROIC % Chart

Scopus BioPharma Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

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-2,858.33

-19,214.29

-887.37

-2,415.65

-9,116.73

Scopus BioPharma Quarterly Data
	Jun18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROIC %	Get a 7-Day Free Trial															-7,256.83	-253,200.00	-5,715.18	-5,141.49	-9,082.17

Competitive Comparison of Scopus BioPharma's ROIC %

For the Biotechnology subindustry, Scopus BioPharma'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.

Scopus BioPharma's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Scopus BioPharma's ROIC % distribution charts can be found below:

* The bar in red indicates where Scopus BioPharma's ROIC % falls into.

Scopus BioPharma ROIC % Calculation

Scopus BioPharma's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-11.715 * ( 1 - 0% )	/	( (0.0030000000000001	+	0.254)	/ 2 )
=	-11.715	/	0.1285
=	-9,116.73 %

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	))
=	8.188	-	4.17	-	( 7.943	-	max(0, 4.17	-	8.185	+	7.943	))
=	0.0030000000000001

	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	))
=	0.392	-	7.202	-	( 0.125	-	max(0, 7.454	-	0.39	+	0.125	))
=	0.254

Scopus BioPharma's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-11.716 * ( 1 - 0% )	/	( (0.163	+	0.094999999999999)	/ 2 )
=	-11.716	/	0.129
=	-9,082.17 %

where

	Invested Capital		(Q: Mar. 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	))
=	1.603	-	9.152	-	( 1.401	-	max(0, 9.313	-	1.601	+	1.401	))
=	0.163

	Invested Capital		(Q: Jun. 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	))
=	0.498	-	10.909	-	( 0.362	-	max(0, 11.002	-	0.496	+	0.362	))
=	0.094999999999999

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

Scopus BioPharma (OTCPK:SCPS) 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, Scopus BioPharma's WACC % is 7.02%. Scopus BioPharma's ROIC % is -9019.31% (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.

Scopus BioPharma ROIC % Related Terms

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Scopus BioPharma (Scopus BioPharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Scopus BioPharma Inc (OTCPK:SCPS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

420 Lexington Avenue, Suite 300, New York, NY, USA, 10170

Website

https://www.scopusbiopharma.com

Scopus BioPharma Inc a biotechnology company focused on developing therapeutics targeting the endocannabinoid system. The endocannabinoid system is comprised of chemical compounds, or cannabinoids, that interact with cannabinoid receptors which are located throughout the body. The company product candidates would utilize synthetically-produced cannabinoids as opposed to plant-derived compounds. Its product candidate comprises CO-sTiRNA, which is a STAT3 inhibitor gene therapy and MRI-1867.

Executives

Ira Scott Greenspan	director	888 SEVENTH AVENUE, 9TH FLOOR, NEW YORK NY 10106
Joshua R Lamstein	director, officer: Chairman	420 LEXINGTON AVENUE, SUITE 300, NEW YORK NY 10170
Alan M Horsager	officer: See Remarks	1021 N EVERETT STREET, GLENDALE CA 91207
Robert J Gibson	director, officer: Vice Chairman	71 LANTERN RIDGE RD, NEW CANAAN CT 06840
Lesley Russell	director	41 MOORES RD., FRAZER PA 19355
Iv David Weild	director	22 ORIOLE AVENUE, BRONXVILLE NY 10708
David S. Battleman	director	C/O TRUENORTH LIFESCIENCES, 348 WEST 57TH STREET, #226, NEW YORK NY 10019
David A. Buckel	director	SHARPSPRING, 550 SW 2ND AVENUE, GAINESVILLE FL 32601
Raphael Hofstein	director	C/O HADASSAH, P.O. BOX 12000, JERUSALEM L3 91120
Paul Hopper	director	7982 DOUG HILL, SAN DIEGO CA 92127
Ashish P Sanghrajka	director, officer: President	101 WALL STREET, APARTMENT 19B, NEW YORK NY 10005