Jasper Commerce (TSXV:JPIM) ROC % : -315.25% (As of Jan. 2024)

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What is Jasper Commerce 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 %. Jasper Commerce's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -315.25%.

As of today (2024-06-04), Jasper Commerce's WACC % is 17.42%. Jasper Commerce's ROC % is -464.50% (calculated using TTM income statement data). Jasper Commerce earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jasper Commerce ROC % Historical Data

The historical data trend for Jasper Commerce'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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Jasper Commerce ROC % Chart

Jasper Commerce Annual Data

Trend

Jul20

Jul21

Jul22

Jul23

ROC %

-167.43

-119.51

-1,071.90

-1,193.70

Jasper Commerce Quarterly Data
	Jul20	Oct20	Jan21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial									-1,451.81	-735.07	-434.57	-349.93	-315.25

Jasper Commerce ROC % Calculation

Jasper Commerce's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-3.383 * ( 1 - 2.26% )	/	( (0.314	+	0.24)	/ 2 )
=	-3.3065442	/	0.277
=	-1,193.70 %

where

	Invested Capital		(A: Jul. 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	))
=	3.25	-	0.778	-	( 2.316	-	max(0, 1.013	-	3.171	+	2.316	))
=	0.314

	Invested Capital		(A: Jul. 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	))
=	0.441	-	0.606	-	( 0.143	-	max(0, 0.813	-	0.408	+	0.143	))
=	0.24

Jasper Commerce's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-1.168 * ( 1 - 0% )	/	( (0.487	+	0.254)	/ 2 )
=	-1.168	/	0.3705
=	-315.25 %

where

	Invested Capital		(Q: Oct. 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	))
=	0.403	-	0.613	-	( 0.199	-	max(0, 1.078	-	0.381	+	0.199	))
=	0.487

	Invested Capital		(Q: Jan. 2024 )
=	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	))
=	0.269	-	0.62	-	( 0.111	-	max(0, 0.863	-	0.258	+	0.111	))
=	0.254

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

Jasper Commerce (TSXV:JPIM) 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, Jasper Commerce's WACC % is 17.42%. Jasper Commerce's ROC % is -464.50% (calculated using TTM income statement data). Jasper Commerce 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.

Jasper Commerce ROC % Related Terms

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Jasper Commerce (TSXV:JPIM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Jasper Commerce Inc (TSXV:JPIM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Wellesley Street West, Suite 214, Toronto, ON, CAN, M4Y 0G7

Website

https://www.jasperpim.com

Jasper Commerce Inc is a Software-as-a-service Product Information Management solution empowering eCommerce retailers, wholesalers or distributors to centralize, organize and richly merchandise products from a single central repository. The company has two main products SaaS PIM subscriptions and Professional services. The company generates majority of its revenue from SaaS PIM subscriptions. The company operates in United States, Canada and others geographically and the majority of its revenue generates from United States.

Executives

Kenneth Gutierrez

Senior Officer

Jasper Commerce (TSXV:JPIM) Headlines

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