Sono Group NV (Sono Group NV) ROC % : 0.00% (As of Jun. 2023)

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What is Sono Group NV 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 %. Sono Group NV's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 0.00%.

As of today (2024-05-20), Sono Group NV's WACC % is 13.99%. Sono Group NV's ROC % is -342.78% (calculated using TTM income statement data). Sono Group NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sono Group NV ROC % Historical Data

The historical data trend for Sono Group NV'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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Sono Group NV ROC % Chart

Sono Group NV Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

-190.92

-519.54

-500.98

-836.47

Sono Group NV Quarterly Data
	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial							-1,265.34	-750.82	-414.46	-737.34	-

Sono Group NV ROC % Calculation

Sono Group NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-192.329 * ( 1 - 0% )	/	( (8.978	+	37.008)	/ 2 )
=	-192.329	/	22.993
=	-836.47 %

where

	Invested Capital		(A: 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	))
=	166.436	-	10.95	-	( 157.001	-	max(0, 14.405	-	160.913	+	157.001	))
=	8.978

	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	))
=	60.879	-	14.123	-	( 32.672	-	max(0, 49.34	-	59.088	+	32.672	))
=	37.008

Sono Group NV's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (37.008	+	101.894)	/ 2 )
=	0	/	69.451
=	0.00 %

where

	Invested Capital		(Q: 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	))
=	60.879	-	14.123	-	( 32.672	-	max(0, 49.34	-	59.088	+	32.672	))
=	37.008

	Invested Capital		(Q: Jun. 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	))
=	13.237	-	1.224	-	( 10.322	-	max(0, 101.794	-	11.913	+	10.322	))
=	101.894

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

Sono Group NV (OTCPK:SEVCF) 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, Sono Group NV's WACC % is 13.99%. Sono Group NV's ROC % is -342.78% (calculated using TTM income statement data). Sono Group NV 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.

Sono Group NV ROC % Related Terms

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Sono Group NV (Sono Group NV) Business Description

Industry

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Traded in Other Exchanges

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Address

Waldmeisterstrasse 76, Munich, DEU, 80935

Website

https://www.sonomotors.com

Sono Group NV is engaged in the field of solar-powered electric mobility. With its proprietary solar technology, the company is able to integrate solar panels into a vehicle's bodywork, using energy captured from the sun to charge the vehicle's battery. The group is engaged in the design and development of its own first solar electric vehicle, the Sion. The company is also involved in process of integrating its solar technology with other manufacturers for different use cases, such as buses, trucks, camper vans, trains, and even boats, to accelerate the transition towards sustainable transportation.