Buddy Technologies (Buddy Technologies) ROC % : -35.66% (As of Dec. 2021)

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What is Buddy Technologies 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 %. Buddy Technologies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2021 was -35.66%.

As of today (2024-05-22), Buddy Technologies's WACC % is 0.00%. Buddy Technologies's ROC % is 0.00% (calculated using TTM income statement data). Buddy Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Buddy Technologies ROC % Historical Data

The historical data trend for Buddy Technologies'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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Buddy Technologies ROC % Chart

Buddy Technologies Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

ROC %

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-1,553.44

-1,131.79

-36.51

-18.04

-22.00

Buddy Technologies Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21
ROC %	Get a 7-Day Free Trial															-15.55	-19.22	-14.07	-27.95	-35.66

Buddy Technologies ROC % Calculation

Buddy Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2021 is calculated as:

	ROC % (A: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2020 )	+	Invested Capital (A: Jun. 2021 ))	/ count )
=	-15.06 * ( 1 - 10.07% )	/	( (67.826	+	55.295)	/ 2 )
=	-13.543458	/	61.5605
=	-22.00 %

where

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	54.662	-	9.231	-	( 1.727	-	max(0, 32.539	-	10.144	+	1.727	))
=	67.826

	Invested Capital		(A: Jun. 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	))
=	53.337	-	4.356	-	( 1.599	-	max(0, 22.015	-	15.701	+	1.599	))
=	55.295

Buddy Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2021 is calculated as:

	ROC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	-13.464 * ( 1 - 7.34% )	/	( (55.295	+	14.683)	/ 2 )
=	-12.4757424	/	34.989
=	-35.66 %

where

	Invested Capital		(Q: Jun. 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	))
=	53.337	-	4.356	-	( 1.599	-	max(0, 22.015	-	15.701	+	1.599	))
=	55.295

	Invested Capital		(Q: Dec. 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	))
=	13.214	-	3.572	-	( 0.954	-	max(0, 17.73	-	12.689	+	0.954	))
=	14.683

Note: The Operating Income data used here is two times the semi-annual (Dec. 2021) data.

Buddy Technologies (OTCPK:POTTF) 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, Buddy Technologies's WACC % is 0.00%. Buddy Technologies's ROC % is 0.00% (calculated using TTM income statement data). Buddy Technologies 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.

Buddy Technologies ROC % Related Terms

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Buddy Technologies (Buddy Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Buddy Technologies Ltd (OTCPK:POTTF) » Definitions » ROC %

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Address

12 Pirie Street, Level 3, Adelaide, SA, AUS, 5000

Website

https://www.buddy.com

Buddy Technologies Ltd is an IoT(Internet of Things) and a cloud-based technology company. The company's operating segment includes Commercial Business, Consumer Business, and Corporate. It generates maximum revenue from the Consumer Business segment that includes all the activities related to LIFX, which is the brand providing smart lighting solutions. Commercial Business includes Buddy Ohm, Buddy Cloud, and other Buddy Managed Services. Its geographical segments include Australia, North America, and EMEA(Europe, the Middle East & Africa).

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