Bluglass (ASX:BLG) ROC %

: -110.12% (As of Dec. 2023)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bluglass's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -110.12%.

As of today (2024-04-19), Bluglass's WACC % is 5.51%. Bluglass's ROC % is -107.47% (calculated using TTM income statement data). Bluglass earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bluglass ROC % Historical Data

The historical data trend for Bluglass'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.

* Premium members only.

Bluglass Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

-88.44

-100.63

-105.26

-109.95

-108.02

Bluglass Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %																-162.21	-118.69	-129.79	-98.92	-110.12

Bluglass ROC % Calculation

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

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-16.672 * ( 1 - 0% )	/	( (14.616	+	16.252)	/ 2 )
=	-16.672	/	15.434
=	-108.02 %

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	))
=	20.457	-	0.489	-	( 5.352	-	max(0, 1.922	-	8.868	+	5.352	))
=	14.616

	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	))
=	21.695	-	1.185	-	( 4.258	-	max(0, 2.545	-	12.527	+	4.258	))
=	16.252

Bluglass's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-15.164 * ( 1 - -6.58% )	/	( (16.252	+	13.102)	/ 2 )
=	-16.1617912	/	14.677
=	-110.12 %

where

	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	))
=	21.695	-	1.185	-	( 4.258	-	max(0, 2.545	-	12.527	+	4.258	))
=	16.252

	Invested Capital		(Q: Dec. 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	))
=	16.887	-	1.06	-	( 2.725	-	max(0, 2.409	-	7.238	+	2.725	))
=	13.102

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

Bluglass (ASX:BLG) 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, Bluglass's WACC % is 5.51%. Bluglass's ROC % is -107.47% (calculated using TTM income statement data). Bluglass 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.

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Bluglass (ASX:BLG) Business Description

Industry

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BUGLF:USA

Address

74 Asquith Street, Silverwater, Sydney, NSW, AUS, 2128

Website

https://www.bluglass.com.au

Bluglass Ltd is an Australia-based semiconductor company. It is engaged in research and product development of compound-semiconductor materials, processes, and equipment to manufacture high-value electronics such as laser diodes, LEDs, and micro LEDs. It is working on achieving its technology and commercial milestones using its patented low-temperature Remote Plasma Chemical Vapour Deposition (RPCVD) technology to manufacture semiconductor materials and produce laser diode, LED, and microLED devices. The company operates in two geographical areas being in Australia and the United States. It derives a majority of revenue from Australia.

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