BioVaxys Technology (BioVaxys Technology) ROC % : -232.88% (As of Jul. 2023)

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What is BioVaxys Technology ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. BioVaxys Technology's annualized return on capital (ROC %) for the quarter that ended in Jul. 2023 was -232.88%.

As of today (2024-06-08), BioVaxys Technology's WACC % is 11.20%. BioVaxys Technology's ROC % is -161.20% (calculated using TTM income statement data). BioVaxys Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

BioVaxys Technology ROC % Historical Data

The historical data trend for BioVaxys Technology's ROC % 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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BioVaxys Technology ROC % Chart

BioVaxys Technology Annual Data

Trend

Oct18

Oct19

Oct20

Oct21

Oct22

ROC %

-284.48

-14.85

-88.32

-95.47

BioVaxys Technology Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
ROC %	Get a 7-Day Free Trial															-47.19	-90.00	-2,457.66	-383.18	-232.88

BioVaxys Technology ROC % Calculation

BioVaxys Technology's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2022 is calculated as:

	ROC % (A: Oct. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2021 )	+	Invested Capital (A: Oct. 2022 ))	/ count )
=	-2.982 * ( 1 - 0% )	/	( (6.136	+	0.111)	/ 2 )
=	-2.982	/	3.1235
=	-95.47 %

where

	Invested Capital		(A: Oct. 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	))
=	6.839	-	0.263	-	( 0.477	-	max(0, 0.263	-	0.703	+	0.477	))
=	6.136

	Invested Capital		(A: Oct. 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	))
=	0.633	-	1.197	-	( 0.104	-	max(0, 1.197	-	0.522	+	0.104	))
=	0.111

BioVaxys Technology's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2023 is calculated as:

	ROC % (Q: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2023 )	+	Invested Capital (Q: Jul. 2023 ))	/ count )
=	-1.7 * ( 1 - 0% )	/	( (1.102	+	0.358)	/ 2 )
=	-1.7	/	0.73
=	-232.88 %

where

	Invested Capital		(Q: Apr. 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	))
=	1.968	-	1.302	-	( 0.021	-	max(0, 1.302	-	0.866	+	0.021	))
=	1.102

	Invested Capital		(Q: Jul. 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	))
=	1.07	-	1.542	-	( 0	-	max(0, 1.542	-	0.712	+	0	))
=	0.358

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

BioVaxys Technology (OTCPK:BVAXF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, BioVaxys Technology's WACC % is 11.20%. BioVaxys Technology's ROC % is -161.20% (calculated using TTM income statement data). BioVaxys Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

BioVaxys Technology ROC % Related Terms

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BioVaxys Technology (BioVaxys Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » BioVaxys Technology Corp (OTCPK:BVAXF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

5LB:Germany BIOV:Canada

Address

146 Thirtieth Street, Suite 100, Etobicoke, ON, CAN, M8W 3D4

Website

https://www.biovaxys.com

BioVaxys Technology Corp is a clinical-stage biopharma company. The company develops antiviral and anticancer vaccine platforms to treat SARS-CoV-2 and other viral infections, as well as ovarian cancer and other solid tumor types.