SAI.TECH Global (SAI.TECH Global) ROIC %

: -140.32% (As of Jun. 2023)

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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SAI.TECH Global's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -140.32%.

As of today (2024-04-19), SAI.TECH Global's WACC % is 10.28%. SAI.TECH Global's ROIC % is -116.10% (calculated using TTM income statement data). SAI.TECH Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SAI.TECH Global ROIC % Historical Data

The historical data trend for SAI.TECH Global'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.

* Premium members only.

SAI.TECH Global Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

ROIC %

21.63

-400.83

-122.39

SAI.TECH Global Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %			-6.17	-498.66	-60.71	-114.56	-140.32

Competitive Comparison

For the Capital Markets subindustry, SAI.TECH Global'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.

SAI.TECH Global ROIC % Distribution

For the Capital Markets industry and Financial Services sector, SAI.TECH Global's ROIC % distribution charts can be found below:

* The bar in red indicates where SAI.TECH Global's ROIC % falls into.

SAI.TECH Global ROIC % Calculation

SAI.TECH Global's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-6.514 * ( 1 - 0% )	/	( (5.739	+	4.906)	/ 2 )
=	-6.514	/	5.3225
=	-122.39 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	11.533	-	1.317	-	( 4.477	-	max(0, 1.396	-	6.88	+	4.477	))
=	5.739

	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	))
=	21.1	-	0.367	-	( 15.827	-	max(0, 0.555	-	18.691	+	15.827	))
=	4.906

SAI.TECH Global'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 )
=	-8.374 * ( 1 - 0% )	/	( (4.906	+	7.03)	/ 2 )
=	-8.374	/	5.968
=	-140.32 %

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	))
=	21.1	-	0.367	-	( 15.827	-	max(0, 0.555	-	18.691	+	15.827	))
=	4.906

	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	))
=	20.687	-	1.484	-	( 12.173	-	max(0, 1.724	-	15.876	+	12.173	))
=	7.03

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

SAI.TECH Global (NAS:SAI) 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, SAI.TECH Global's WACC % is 10.28%. SAI.TECH Global's ROIC % is -116.10% (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.

SAI.TECH Global ROIC % Related Terms

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SAI.TECH Global (SAI.TECH Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » SAI.TECH Global Corp (NAS:SAI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

195 Pearl’s Hill Terrace, Number 01-05, Singapore, SGP, 168976

Website

https://www.sai.tech

SAI.TECH Global Corp is an energy saving mining operator that engages in the hosting of bitcoin mining machines for its clients. It uses a proprietary liquid cooling and heat exchange technology towards mining machines that enables utilization of waste heat to provide recycled energy heating for potential customers while achieving lower mining operating costs. The Company has two reportable segments namely equipment sales & hosting and mining pool business.

Executives

Michael Davidov	director	60 EAST 42 STREET, NEW YORK NY 10165
Tao Jiang	director	3 STONER AVE, GREAT NECK NY 11021
Luqi Wen	officer: CFO and Secretary	3 STONER AVE, GREAT NECK NY 11021
Jianwei Li	director, 10 percent owner, officer: Chairman and Co-CEO	3 STONER AVE, GREAT NECK NY 11021
David Xianglin Li	director	3 STONER AVE, GREAT NECK NY 11021
Tradeup Global Sponsor Llc	director, 10 percent owner	3 STONER AVE, GREAT NECK NY 11021
Lei Huang	officer: Co-Chief Executive Officer	3 STONER AVE, GREAT NECK NY 10021