ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Xenetic Biosciences's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -498.23%.
As of today (2024-05-25), Xenetic Biosciences's WACC % is 19.17%. Xenetic Biosciences's ROIC % is -470.89% (calculated using TTM income statement data).
Xenetic Biosciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Xenetic Biosciences ROIC % Historical Data
The historical data trend for Xenetic Biosciences'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.
Competitive Comparison of Xenetic Biosciences's ROIC %
For the Biotechnology subindustry, Xenetic Biosciences'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.
Xenetic Biosciences's ROIC % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Xenetic Biosciences's ROIC % distribution charts can be found below:
* The bar in red indicates where Xenetic Biosciences's ROIC % falls into.
Xenetic Biosciences ROIC % Calculation
Xenetic Biosciences's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
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.
Xenetic Biosciences (NAS:XBIO) 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, Xenetic Biosciences's WACC % is 19.17%. Xenetic Biosciences's ROIC % is -470.89% (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.
Xenetic Biosciences ROIC % Related Terms
Thank you for viewing the detailed overview of Xenetic Biosciences's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Xenetic Biosciences (Xenetic Biosciences) Business Description
Xenetic Biosciences Inc is a biopharmaceutical company focused on progressing XCART, a personalized CAR T platform technology engineered to target patient-specific tumor neoantigens. The Company is initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual patient’s malignant tumor cells for the treatment of B-cell lymphomas. XCART has the potential to fuel a robust pipeline of therapeutic assets targeting high-value oncology indications. Additionally, Xenetic is leveraging PolyXen™, its proprietary drug delivery platform, by partnering with biotechnology and pharmaceutical companies. PolyXen™ has demonstrated its ability to improve the half-life and other pharmacological properties of next-generation biologic drugs. The Company has an exclusive license agreement with Takeda Pharmaceuticals Co. Ltd. in the field of coagulation disorders and expects to earn royalty payments under this agreement.
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