Foresight Autonomous Holdings (Foresight Autonomous Holdings) ROC % : -320.16% (As of Dec. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Foresight Autonomous Holdings 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 %. Foresight Autonomous Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -320.16%.

As of today (2024-05-26), Foresight Autonomous Holdings's WACC % is 19.92%. Foresight Autonomous Holdings's ROC % is -309.54% (calculated using TTM income statement data). Foresight Autonomous Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Foresight Autonomous Holdings ROC % Historical Data

The historical data trend for Foresight Autonomous Holdings'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.

* Premium members only.

Foresight Autonomous Holdings ROC % Chart

Foresight Autonomous Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-158.75

-154.47

-204.92

-212.19

-278.62

Foresight Autonomous Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-289.18	-270.81	-331.54	-377.43	-320.16

Foresight Autonomous Holdings ROC % Calculation

Foresight Autonomous Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-16.291 * ( 1 - 0% )	/	( (7.578	+	4.116)	/ 2 )
=	-16.291	/	5.847
=	-278.62 %

where

	Invested Capital		(A: Dec. 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	))
=	32.893	-	0.614	-	( 26.391	-	max(0, 2.634	-	27.335	+	26.391	))
=	7.578

	Invested Capital		(A: Dec. 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	))
=	19.31	-	0.299	-	( 16.109	-	max(0, 2.152	-	17.047	+	16.109	))
=	4.116

Foresight Autonomous Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-13.192 * ( 1 - 0% )	/	( (4.125	+	4.116)	/ 2 )
=	-13.192	/	4.1205
=	-320.16 %

where

	Invested Capital		(Q: Sep. 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	))
=	18.801	-	1.9	-	( 14.106	-	max(0, 2.343	-	15.119	+	14.106	))
=	4.125

	Invested Capital		(Q: Dec. 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	))
=	19.31	-	0.299	-	( 16.109	-	max(0, 2.152	-	17.047	+	16.109	))
=	4.116

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

Foresight Autonomous Holdings (NAS:FRSX) 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, Foresight Autonomous Holdings's WACC % is 19.92%. Foresight Autonomous Holdings's ROC % is -309.54% (calculated using TTM income statement data). Foresight Autonomous Holdings 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.

Foresight Autonomous Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Foresight Autonomous Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Foresight Autonomous Holdings (Foresight Autonomous Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Foresight Autonomous Holdings Ltd (NAS:FRSX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

FRSX:Israel

Address

7 Golda Meir Street, Weizmann Science Park, Ness Ziona, ISR, 7403650

Website

https://www.foresightauto.com

Foresight Autonomous Holdings Ltd is a technology company engaged in the design, development and commercialization of vision systems for the automotive industry. The company develops both in-line-of-sight vision systems and beyond-line-of-sight cellular-based applications through its wholly-owned subsidiaries. Its systems are designed to improve driving safety by enabling highly accurate and reliable threat detection while ensuring the lowest rates of false alerts. Foresight is pursuing several markets and believes its advanced systems will revolutionize automotive safety by providing an automotive-grade, cost-effective platform.