Eguana Technologies (Eguana Technologies) ROC % : -68.13% (As of Sep. 2023)

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What is Eguana Technologies 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 %. Eguana Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -68.13%.

As of today (2024-04-28), Eguana Technologies's WACC % is 11.18%. Eguana Technologies's ROC % is -44.36% (calculated using TTM income statement data). Eguana Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Eguana Technologies ROC % Historical Data

The historical data trend for Eguana Technologies'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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Eguana Technologies ROC % Chart

Eguana Technologies Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

ROC %

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-186.56

-287.16

-207.33

-256.59

-119.64

Eguana Technologies Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-105.10	-	-43.32	-63.85	-68.13

Eguana Technologies ROC % Calculation

Eguana Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2020 is calculated as:

	ROC % (A: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2019 )	+	Invested Capital (A: Sep. 2020 ))	/ count )
=	-3.889 * ( 1 - 0% )	/	( (2.742	+	3.759)	/ 2 )
=	-3.889	/	3.2505
=	-119.64 %

where

	Invested Capital		(A: Sep. 2019 )
=	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	))
=	3.438	-	2.999	-	( 0.363	-	max(0, 5.435	-	3.132	+	0.363	))
=	2.742

	Invested Capital		(A: Sep. 2020 )
=	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	))
=	2.866	-	3.063	-	( 0.399	-	max(0, 6.23	-	2.274	+	0.399	))
=	3.759

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

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-13.928 * ( 1 - 0% )	/	( (21.498	+	19.388)	/ 2 )
=	-13.928	/	20.443
=	-68.13 %

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	))
=	29.147	-	4	-	( 3.649	-	max(0, 9.901	-	26.913	+	3.649	))
=	21.498

	Invested Capital		(Q: Sep. 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	))
=	25.556	-	4.088	-	( 2.08	-	max(0, 10.285	-	23.451	+	2.08	))
=	19.388

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

Eguana Technologies (OTCPK:EGTYF) 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, Eguana Technologies's WACC % is 11.18%. Eguana Technologies's ROC % is -44.36% (calculated using TTM income statement data). Eguana Technologies 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.

Eguana Technologies ROC % Related Terms

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Eguana Technologies (Eguana Technologies) Business Description

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EGT:Canada

Address

3636 7th Street S.E., Calgary, AB, CAN, T2G 2Y8

Website

https://www.eguanatech.com

Eguana Technologies Inc designs, markets, manufactures, and sells residential and small commercial energy storage systems. The company offers power electronics for fuel cell, photovoltaic, and battery applications from manufacturing facilities in North America, Australia, and Europe. The product lines of the company are based on a proprietary and patented, software-driven, power control technology platform for residential and commercial markets. This standardized platform supports market-specific products that are certified and optimized for use in all markets.