Kornit Digital (Kornit Digital) ROC % : -22.19% (As of Dec. 2023)

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What is Kornit Digital 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 %. Kornit Digital's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -22.19%.

As of today (2024-04-27), Kornit Digital's WACC % is 14.20%. Kornit Digital's ROC % is -17.12% (calculated using TTM income statement data). Kornit Digital earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kornit Digital ROC % Historical Data

The historical data trend for Kornit Digital'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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Kornit Digital ROC % Chart

Kornit Digital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.39

-4.58

4.59

-22.69

-17.20

Kornit Digital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-39.60	-18.57	-16.52	-11.05	-22.19

Kornit Digital ROC % Calculation

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

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-87.531 * ( 1 - -1.53% )	/	( (524.83	+	508.409)	/ 2 )
=	-88.8702243	/	516.6195
=	-17.20 %

where

	Invested Capital		(A: 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	))
=	957.666	-	32.826	-	( 400.01	-	max(0, 65.37	-	578.839	+	400.01	))
=	524.83

	Invested Capital		(A: 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	))
=	865.58	-	24.674	-	( 332.497	-	max(0, 50.102	-	522.387	+	332.497	))
=	508.409

Kornit Digital'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-111.276 * ( 1 - -2.41% )	/	( (518.908	+	508.409)	/ 2 )
=	-113.9577516	/	513.6585
=	-22.19 %

where

	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	))
=	898.107	-	32.842	-	( 346.357	-	max(0, 54.458	-	546.111	+	346.357	))
=	518.908

	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	))
=	865.58	-	24.674	-	( 332.497	-	max(0, 50.102	-	522.387	+	332.497	))
=	508.409

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

Kornit Digital (NAS:KRNT) 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, Kornit Digital's WACC % is 14.20%. Kornit Digital's ROC % is -17.12% (calculated using TTM income statement data). Kornit Digital 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.

Kornit Digital ROC % Related Terms

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Kornit Digital (Kornit Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kornit Digital Ltd (NAS:KRNT) » Definitions » ROC %

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KRNT:Mexico 0KD:Germany

Address

12 Ha'Amal Street, Afek Park, Rosh-Ha'Ayin, ISR, 4809246

Website

https://www.kornit.com

Kornit Digital Ltd develops, designs and markets digital printing solutions for the global printed textile industry. The company focuses on its DTG and DTF segments of the printed textile industry. Its solutions include digital printing systems, ink and other consumables, associated software and value-added services that allow for large-scale printing of short runs of complex images and designs directly on finished garments and fabrics. It has developed and offers a broad portfolio of differentiated digital printing solutions for the DTG market that provide answers to challenges faced by participants in the global printed textile industry. It generates revenue from sales of systems, ink and other consumables and service including software subscriptions.