ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Altair Nanotechnologies's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2016 was -4.52%.
As of today (2024-05-26), Altair Nanotechnologies's WACC % is 0.00%. Altair Nanotechnologies's ROIC % is -32.24% (calculated using TTM income statement data).
Altair Nanotechnologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
* 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.
Competitive Comparison of Altair Nanotechnologies's ROIC %
For the Electronic Components subindustry, Altair Nanotechnologies's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Altair Nanotechnologies's ROIC % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Altair Nanotechnologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Altair Nanotechnologies's ROIC % falls into.
Altair Nanotechnologies ROIC % Calculation
Altair Nanotechnologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Sep. 2016) data.
* 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.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Altair Nanotechnologies's WACC % is 0.00%. Altair Nanotechnologies's ROIC % is -32.24% (calculated using TTM income statement data).
Be Aware
Like ROE % and ROA %, ROIC % 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.
Altair Nanotechnologies ROIC % Related Terms
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Altair Nanotechnologies (FRA:AHNA) Business Description
Altair Nanotechnologies Inc was incorporated under the laws of the Province of Ontario, Canada in April 1973. The Company develops, manufactures and sells nano lithium titanate batteries and energy storage systems. Its nano lithium titanate battery systems offer higher power density, longer cycle life, rapid charge and discharge capabilities, operating temperature range and higher levels of safety than conventional lithium-ion batteries. The Company targets applications that effectively utilize the key attributes of its technology. It operates in two major business segments: Power and Energy Group, and All Other operations. The Power and Energy Group develops, produces, and sells battery systems. The All Others group consists of the remaining portions of the previous Life Sciences and Performance Materials groups. Its target market is electric grid, which design, manufacture and sell grid-scale battery systems, which provide ancillary services including frequency regulation. The Company currently is working with multiple vehicle manufacturers and suppliers regarding their hybrid and electric vehicle efforts. In 2012, it focused on the launch of its newest energy storage system, the ALTI-ESS Advantage. First, the company focused its product development on the launch of newest electric grid product, the 2 megawatt ALTI-ESS Advantage, which increased system specification from 1 megawatt to 2 megawatts, while reducing the containerized power modules footprint from 53 feet to 40 feet. Second, it focused on the manufacture of five grid-scale energy storage systems for four customers, who included the Hawaii Natural Energy Institute (HNEI), Vestas, TSK Solar and a U.S. utility company based on the East Coast. The Company has developed, and continues to develop, through its primary materials science research, a lithium-ion battery chemistry using nanotechnologies to create materials offering unique electrochemistry properties for rechargeable batteries. It manufactures cells, modules, packs and turn-key energy storage systems for its target customers, including 24V, 36V, and 48V industrial and transportation systems, a configurable industrial PowerRack system, and large-scale systems for the electric grid. The Company uses compounds of lithium and of titanium to manufacture its nano lithium titanate. It has a total of 12 U.S. and 42 foreign patents. A number of energy storage and power electronic component producers have entered into the frequency regulation market which include include ABB, A123 Systems., BYD, GS Yuasa, LG Chem, Mitsubishi, Parker Hannifin, Saft and XtremePower. Its products typically compete with existing methods for providing frequency regulation and renewables integration rather than competing battery manufacturers. Its current and proposed activities are subject to numerous federal, state, and local laws and regulations concerning machine and chemical safety and environmental protection.
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