OWC Pharmaceutical Research (OWC Pharmaceutical Research) ROC % : -563.75% (As of Sep. 2019)

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What is OWC Pharmaceutical Research 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 %. OWC Pharmaceutical Research's annualized return on capital (ROC %) for the quarter that ended in Sep. 2019 was -563.75%.

As of today (2024-06-06), OWC Pharmaceutical Research's WACC % is 0.00%. OWC Pharmaceutical Research's ROC % is 0.00% (calculated using TTM income statement data). OWC Pharmaceutical Research earns returns that do not match up to its cost of capital. It will destroy value as it grows.

OWC Pharmaceutical Research ROC % Historical Data

The historical data trend for OWC Pharmaceutical Research'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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OWC Pharmaceutical Research ROC % Chart

OWC Pharmaceutical Research Annual Data

Trend

Dec08

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROC %

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-8,989.29

-2,501.52

-1,645.49

-2,265.67

-1,372.52

OWC Pharmaceutical Research Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
ROC %	Get a 7-Day Free Trial															-1,098.97	-2,321.38	-765.77	-609.16	-563.75

OWC Pharmaceutical Research ROC % Calculation

OWC Pharmaceutical Research's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-4.296 * ( 1 - 0% )	/	( (0.249	+	0.377)	/ 2 )
=	-4.296	/	0.313
=	-1,372.52 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	1.061	-	0.037	-	( 0.971	-	max(0, 0.27	-	1.045	+	0.971	))
=	0.249

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	3.553	-	0.098	-	( 3.464	-	max(0, 0.438	-	3.516	+	3.464	))
=	0.377

OWC Pharmaceutical Research's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2019 is calculated as:

	ROC % (Q: Sep. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Sep. 2019 ))	/ count )
=	-2.348 * ( 1 - 0% )	/	( (0.498	+	0.335)	/ 2 )
=	-2.348	/	0.4165
=	-563.75 %

where

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	2.335	-	0.104	-	( 1.84	-	max(0, 0.516	-	2.249	+	1.84	))
=	0.498

	Invested Capital		(Q: Sep. 2019 )
=	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	))
=	1.773	-	0.286	-	( 1.465	-	max(0, 0.543	-	1.695	+	1.465	))
=	0.335

Note: The Operating Income data used here is four times the quarterly (Sep. 2019) data.

OWC Pharmaceutical Research (OTCPK:OWCP) 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, OWC Pharmaceutical Research's WACC % is 0.00%. OWC Pharmaceutical Research's ROC % is 0.00% (calculated using TTM income statement data). OWC Pharmaceutical Research 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.

OWC Pharmaceutical Research ROC % Related Terms

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OWC Pharmaceutical Research (OWC Pharmaceutical Research) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » OWC Pharmaceutical Research Corp (OTCPK:OWCP) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

2 Ben Gurion Street, Ramat Gan, ISR, 5257334

Website

http://www.owcpharma.com

OWC Pharmaceutical Research Corp is a medical cannabis research and development company. The firm through its subsidiary researches and develops cannabis-based products and treatments specifically designed for multiple myeloma, psoriasis, fibromyalgia, post-traumatic stress disorder (PTSD), migraine, sexual function and skin disorders. It also provides consulting services to governmental and private entities to assist them with developing and implementing tailor-made medical cannabis program.

Executives

Asher Zwebner

director, officer: CHIEF FINANCIAL OFFICER

CDOOR CORPORATION, 20 A REHOV SHAREI TORAH BAYIT VEGAN, JERUSALEM L3 96387