- Atara Biotherapeutics, Inc. (NASDAQ:ATRA) showcases a high Return on Invested Capital (ROIC) of 36.19%, significantly outperforming its peers in the biotechnology sector.
- The company’s ROIC to WACC ratio of 5.54 indicates superior capital utilization and potential for value creation compared to competitors.
- Other biotech firms like G1 Therapeutics, Inc. (GTHX), Allogene Therapeutics, Inc. (ALLO), MacroGenics, Inc. (MGNX), AnaptysBio, Inc. (ANAB), and CytomX Therapeutics, Inc. (CTMX) show negative or lower ROIC to WACC ratios, highlighting inefficiencies or challenges in capital management.
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) is a biotechnology company focused on developing therapies for patients with serious diseases, particularly in the field of immunotherapy. The company aims to harness the power of the immune system to treat cancer and other diseases. In the competitive landscape, Atara stands out due to its innovative approach and strong financial metrics.
Atara’s Return on Invested Capital (ROIC) is 36.19%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 6.53%. This results in a ROIC to WACC ratio of 5.54, indicating that Atara is effectively using its capital to generate returns well above its cost. This efficiency in capital utilization suggests a strong potential for value creation.
In comparison, G1 Therapeutics, Inc. (GTHX) has a negative ROIC of -17.42% and a WACC of 12.24%, leading to a ROIC to WACC ratio of -1.42. This indicates that G1 Therapeutics is not generating returns above its cost of capital, highlighting inefficiencies in capital use. Similarly, Allogene Therapeutics, Inc. (ALLO) shows a ROIC of -57.03% against a WACC of 4.85%, resulting in a ROIC to WACC ratio of -11.77, further emphasizing capital inefficiency.
MacroGenics, Inc. (MGNX) and AnaptysBio, Inc. (ANAB) also exhibit negative ROIC to WACC ratios of -3.98 and -2.27, respectively. These figures suggest that both companies are struggling to generate returns that exceed their cost of capital, indicating potential challenges in capital management and value creation.
CytomX Therapeutics, Inc. (CTMX) presents a more positive picture with a ROIC of 30.37% and a WACC of 13.35%, resulting in a ROIC to WACC ratio of 2.27. While this indicates that CytomX is generating returns above its cost of capital, it is not as efficient as Atara. Overall, Atara Biotherapeutics leads its peers in capital efficiency, showcasing its strong position in the biotechnology sector.
