GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Context Therapeutics Inc (NAS:CNTX) » Definitions » ROIC %

Context Therapeutics (Context Therapeutics) ROIC % : -4,001.73% (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Context Therapeutics 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 %. Context Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -4,001.73%.

As of today (2024-05-14), Context Therapeutics's WACC % is 10.48%. Context Therapeutics's ROIC % is -3812.65% (calculated using TTM income statement data). Context Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Context Therapeutics ROIC % Historical Data

The historical data trend for Context Therapeutics'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.

Context Therapeutics ROIC % Chart

Context Therapeutics Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
-24.58 -18.42 -224.54 -1,867.13 -2,951.50

Context Therapeutics Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1,661.64 -3,831.61 -4,805.45 -4,059.11 -4,001.73

Competitive Comparison of Context Therapeutics's ROIC %

For the Biotechnology subindustry, Context Therapeutics'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.


Context Therapeutics's ROIC % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Context Therapeutics's ROIC % falls into.



Context Therapeutics ROIC % Calculation

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

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-25.073 * ( 1 - 0% )/( (1.021 + 0.678)/ 2 )
=-25.073/0.8495
=-2,951.50 %

where

Context Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-27.732 * ( 1 - 0% )/( (0.708 + 0.678)/ 2 )
=-27.732/0.693
=-4,001.73 %

where

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


Context Therapeutics  (NAS:CNTX) 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, Context Therapeutics's WACC % is 10.48%. Context Therapeutics's ROIC % is -3812.65% (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.


Context Therapeutics ROIC % Related Terms

Thank you for viewing the detailed overview of Context Therapeutics's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Context Therapeutics (Context Therapeutics) Business Description

Traded in Other Exchanges
Address
2001 Market Street, Suite 3915, Unit No. 15, Philadelphia, PA, USA, 19103
Context Therapeutics Inc is a clinical-stage biopharmaceutical company dedicated to improving the lives of women living with cancer. The development team is advancing a pipeline of innovative therapies with a primary focus on treating female, hormone-dependent cancer, including breast, ovarian, and endometrial cancer.
Executives
Martin A. Lehr director, officer: Chief Executive Officer 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104
Jennifer Lynn Minai-azary officer: Chief Financial Officer 110 MILLER AVENUE, SUITE 100, ANN ARBOR MI 48104
Alex C. Levit officer: Chief Legal Officer, Corp. Sec 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104
Tarek Sahmoud officer: Chief Medical Officer 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104
Richard J Berman director 305 COLLEGE ROAD EAST, PRINCETON NJ 08540
Jennifer Evans Stacey director AUXILIUM PHARMACEUTICALS, INC., 160 WEST GERMANTOWN PIKE, NORRISTOWN PA 19401
Linda West director C/O GALERA THERAPEUTICS, INC., 2 W LIBERTY BLVD., #110, MALVERN PA 19355
Evan G. Dick officer: SVP of R&D 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104
William F. Rencher officer: Head of CMC and Regulatory 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104
Philip W. Kantoff director 3675 MARKET STREET, SUITE 200, PHILADELPHIA PA 19104

Context Therapeutics (Context Therapeutics) Headlines

From GuruFocus

Context Therapeutics� Highlights 2023 Corporate Priorities and Pipeline Milestones

By Stock market mentor Stock market mentor 01-04-2023