Xtract One Technologies (Xtract One Technologies) ROIC % : -124.81% (As of Jan. 2024)

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What is Xtract One Technologies 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 %. Xtract One Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -124.81%.

As of today (2024-04-28), Xtract One Technologies's WACC % is 10.07%. Xtract One Technologies's ROIC % is -139.78% (calculated using TTM income statement data). Xtract One Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xtract One Technologies ROIC % Historical Data

The historical data trend for Xtract One Technologies'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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Xtract One Technologies ROIC % Chart

Xtract One Technologies Annual Data

Trend

May14

May15

May16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROIC %

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-197.74

-83.19

-34.64

-56.58

-176.09

Xtract One Technologies Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROIC %	Get a 7-Day Free Trial															-194.41	-178.86	-154.20	-123.85	-124.81

Competitive Comparison of Xtract One Technologies's ROIC %

For the Software - Application subindustry, Xtract One Technologies'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.

Xtract One Technologies's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Xtract One Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where Xtract One Technologies's ROIC % falls into.

Xtract One Technologies ROIC % Calculation

Xtract One Technologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROIC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-12.091 * ( 1 - 0% )	/	( (7.067	+	6.666)	/ 2 )
=	-12.091	/	6.8665
=	-176.09 %

where

	Invested Capital		(A: Jul. 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	))
=	13.959	-	2.04	-	( 4.852	-	max(0, 2.44	-	7.689	+	4.852	))
=	7.067

	Invested Capital		(A: Jul. 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	))
=	14.381	-	1.907	-	( 6.303	-	max(0, 3.128	-	8.936	+	6.303	))
=	6.666

Xtract One Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROIC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-9.74 * ( 1 - 0% )	/	( (6.511	+	9.097)	/ 2 )
=	-9.74	/	7.804
=	-124.81 %

where

	Invested Capital		(Q: Oct. 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	))
=	12.01	-	1.771	-	( 3.858	-	max(0, 2.919	-	6.647	+	3.858	))
=	6.511

	Invested Capital		(Q: Jan. 2024 )
=	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	))
=	12.291	-	1.805	-	( 3.123	-	max(0, 5.35	-	6.739	+	3.123	))
=	9.097

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

Xtract One Technologies (OTCPK:XTRAF) 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, Xtract One Technologies's WACC % is 10.07%. Xtract One Technologies's ROIC % is -139.78% (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.

Xtract One Technologies ROIC % Related Terms

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Xtract One Technologies (Xtract One Technologies) Business Description

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0PL:Germany XTRA:Canada

Address

257 Adelaide Street West, Suite 400, Toronto, ON, CAN, M5H 1X9

Website

https://www.xtractone.com

Xtract One Technologies Inc is a leading technology-driven threat detection and security solution leveraging AI to provide seamless and secure patron access control experiences. The principal business of the Company is the development and commercialization of an integrated, layered, AI-powered threat detection gateway solution, referred to as the Platform, with the aim of enhancing public health and safety. The company makes unobtrusive threat detection systems that enable venue-building operators to prioritize and deliver improved patron experiences while providing unprecedented safety. Xtract One's innovative multi-sensor gateway product enables companies to covertly screen for weapons at points of entry without disrupting the flow of traffic.