Voyageur Pharmaceuticals (TSXV:VM) ROIC % : -62.85% (As of Feb. 2024)

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What is Voyageur Pharmaceuticals 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 %. Voyageur Pharmaceuticals's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2024 was -62.85%.

As of today (2024-05-27), Voyageur Pharmaceuticals's WACC % is 4.40%. Voyageur Pharmaceuticals's ROIC % is -63.78% (calculated using TTM income statement data). Voyageur Pharmaceuticals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Voyageur Pharmaceuticals ROIC % Historical Data

The historical data trend for Voyageur Pharmaceuticals'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.

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Voyageur Pharmaceuticals ROIC % Chart

Voyageur Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

ROIC %

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-46.82

-70.19

-129.25

-96.42

-67.08

Voyageur Pharmaceuticals Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROIC %	Get a 7-Day Free Trial															-76.37	-124.08	-25.55	-44.11	-62.85

Competitive Comparison of Voyageur Pharmaceuticals's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Voyageur Pharmaceuticals'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.

Voyageur Pharmaceuticals's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Voyageur Pharmaceuticals's ROIC % distribution charts can be found below:

* The bar in red indicates where Voyageur Pharmaceuticals's ROIC % falls into.

Voyageur Pharmaceuticals ROIC % Calculation

Voyageur Pharmaceuticals's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROIC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	-1.346 * ( 1 - 0% )	/	( (1.938	+	2.075)	/ 2 )
=	-1.346	/	2.0065
=	-67.08 %

where

	Invested Capital		(A: Nov. 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	))
=	2.095	-	0.591	-	( 0.032	-	max(0, 0.591	-	0.157	+	0.032	))
=	1.938

	Invested Capital		(A: Nov. 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	))
=	2.164	-	0.674	-	( 0.002	-	max(0, 0.674	-	0.089	+	0.002	))
=	2.075

Voyageur Pharmaceuticals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROIC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-1.316 * ( 1 - 0% )	/	( (2.075	+	2.113)	/ 2 )
=	-1.316	/	2.094
=	-62.85 %

where

	Invested Capital		(Q: Nov. 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	))
=	2.164	-	0.674	-	( 0.002	-	max(0, 0.674	-	0.089	+	0.002	))
=	2.075

	Invested Capital		(Q: Feb. 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	))
=	2.562	-	0.931	-	( 0.25	-	max(0, 0.931	-	0.449	+	0.25	))
=	2.113

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

Voyageur Pharmaceuticals (TSXV:VM) 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, Voyageur Pharmaceuticals's WACC % is 4.40%. Voyageur Pharmaceuticals's ROIC % is -63.78% (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.

Voyageur Pharmaceuticals ROIC % Related Terms

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Voyageur Pharmaceuticals (TSXV:VM) Business Description

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VYYRF:USA

Address

333 Southwest 7th Avenue, Suite 800, Calgary, AB, CAN, T2P 2Z1

Website

https://www.voyageurpharmaceuticals.ca

Voyageur Pharmaceuticals Ltd is engaged in the development of pharmaceutical ingredients (API) minerals. The company focuses on developing barium and iodine radiocontrast products and bromine-based pharmaceutical products. It provides its products for medical applications and diagnostics.

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