Online Blockchain (STU:RCQ) ROIC % : -73.58% (As of Jun. 2023)

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What is Online Blockchain ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Online Blockchain's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -73.58%.

As of today (2024-06-05), Online Blockchain's WACC % is 10.22%. Online Blockchain's ROIC % is -70.74% (calculated using TTM income statement data). Online Blockchain earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Online Blockchain ROIC % Historical Data

The historical data trend for Online Blockchain's ROIC % 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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Online Blockchain ROIC % Chart

Online Blockchain Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

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-42.77

-14.01

-21.15

-62.30

-97.38

Online Blockchain Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %	Get a 7-Day Free Trial															-19.10	-63.91	-51.15	-53.37	-73.58

Competitive Comparison of Online Blockchain's ROIC %

For the Software - Application subindustry, Online Blockchain'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.

Online Blockchain's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Online Blockchain's ROIC % distribution charts can be found below:

* The bar in red indicates where Online Blockchain's ROIC % falls into.

Online Blockchain ROIC % Calculation

Online Blockchain's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-1.114 * ( 1 - 0% )	/	( (1.353	+	0.935)	/ 2 )
=	-1.114	/	1.144
=	-97.38 %

where

	Invested Capital		(A: Jun. 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	))
=	2.252	-	0.012	-	( 0.891	-	max(0, 0.035	-	0.922	+	0.891	))
=	1.353

	Invested Capital		(A: 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	))
=	1.178	-	0.065	-	( 0.224	-	max(0, 0.098	-	0.276	+	0.224	))
=	0.935

Online Blockchain's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-1.224 * ( 1 - -0.33% )	/	( (2.403	+	0.935)	/ 2 )
=	-1.2280392	/	1.669
=	-73.58 %

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	))
=	2.853	-	0.083	-	( 0.421	-	max(0, 0.083	-	0.45	+	0.421	))
=	2.403

	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	))
=	1.178	-	0.065	-	( 0.224	-	max(0, 0.098	-	0.276	+	0.224	))
=	0.935

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Online Blockchain (STU:RCQ) ROIC % Explanation

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, Online Blockchain's WACC % is 10.22%. Online Blockchain's ROIC % is -70.74% (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.

Online Blockchain ROIC % Related Terms

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Online Blockchain (STU:RCQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Online Blockchain PLC (STU:RCQ) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

85 Great Portland Street, 1st Floor, London, GBR, W1W 7LT

Website

https://www.onlineblockchain.io

Online Blockchain PLC works as an incubator and investor in internet and information businesses. The company is currently focusing on blockchain technology development. Its business model is to establish new blockchain-related ventures, using the company's in-house technical expertise and working with partners to create customer demand and interest in the company's projects. It operates in two reportable segments including the provision of management services and others. It derives revenue from the provision of management services.

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