Aura Fat Projects Acquisition (Aura Fat Projects Acquisition) ROC % : -2.32% (As of Feb. 2024)

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What is Aura Fat Projects Acquisition 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 %. Aura Fat Projects Acquisition's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -2.32%.

As of today (2024-06-10), Aura Fat Projects Acquisition's WACC % is 10.43%. Aura Fat Projects Acquisition's ROC % is -2.38% (calculated using TTM income statement data). Aura Fat Projects Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aura Fat Projects Acquisition ROC % Historical Data

The historical data trend for Aura Fat Projects Acquisition'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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Aura Fat Projects Acquisition ROC % Chart

Aura Fat Projects Acquisition Annual Data

Trend

Nov22

Nov23

ROC %

-0.56

-2.24

Aura Fat Projects Acquisition Quarterly Data
	Dec21	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial				-0.88	-2.00	-2.46	-4.50	-2.32

Aura Fat Projects Acquisition ROC % Calculation

Aura Fat Projects Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	-1.673 * ( 1 - 0% )	/	( (118.785	+	30.604)	/ 2 )
=	-1.673	/	74.6945
=	-2.24 %

where

	Invested Capital		(A: Nov. 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	))
=	119.266	-	0.124	-	( 0.361	-	max(0, 0.124	-	0.481	+	0.361	))
=	118.785

	Invested Capital		(A: Nov. 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	))
=	30.968	-	1.93	-	( 0.233	-	max(0, 1.93	-	0.364	+	0.233	))
=	30.604

Aura Fat Projects Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-0.716 * ( 1 - 0% )	/	( (30.604	+	31.157)	/ 2 )
=	-0.716	/	30.8805
=	-2.32 %

where

	Invested Capital		(Q: Nov. 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	))
=	30.968	-	1.93	-	( 0.233	-	max(0, 1.93	-	0.364	+	0.233	))
=	30.604

	Invested Capital		(Q: Feb. 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	))
=	31.392	-	2.128	-	( 0.132	-	max(0, 2.128	-	0.235	+	0.132	))
=	31.157

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

Aura Fat Projects Acquisition (NAS:AFAR) 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, Aura Fat Projects Acquisition's WACC % is 10.43%. Aura Fat Projects Acquisition's ROC % is -2.38% (calculated using TTM income statement data). Aura Fat Projects Acquisition 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.

Aura Fat Projects Acquisition ROC % Related Terms

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Aura Fat Projects Acquisition (Aura Fat Projects Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Aura Fat Projects Acquisition Corp (NAS:AFAR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 09-00, 1 Phillip Street, Royal One Phillip, Singapore, SGP, 048692

Website

Aura Fat Projects Acquisition Corp formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar Business Combination with one or more businesses.

Executives

Aura Fat Projects Capital Llc

10 percent owner

103 SOUTH CHURCH STREET, PO BOX 10240, GRAND CAYMAN E9 KY1-1002