Supernova Digital Assets (AQSE:SOL) ROC % : -330.24% (As of Oct. 2023)

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What is Supernova Digital Assets 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 %. Supernova Digital Assets's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was -330.24%.

As of today (2024-06-20), Supernova Digital Assets's WACC % is 3.32%. Supernova Digital Assets's ROC % is -160.86% (calculated using TTM income statement data). Supernova Digital Assets earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Supernova Digital Assets ROC % Historical Data

The historical data trend for Supernova Digital Assets'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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Supernova Digital Assets ROC % Chart

Supernova Digital Assets Annual Data

Trend

Oct20

Oct21

Oct22

Oct23

ROC %

-15.20

-29.27

-157.17

Supernova Digital Assets Semi-Annual Data
	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
ROC %	Get a 7-Day Free Trial			-9.45	-67.49	18.01	-48.40	-330.24

Supernova Digital Assets ROC % Calculation

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

	ROC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	-7.142 * ( 1 - 0% )	/	( (6.198	+	2.89)	/ 2 )
=	-7.142	/	4.544
=	-157.17 %

where

	Invested Capital		(A: Oct. 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	))
=	9.729	-	0.091	-	( 3.44	-	max(0, 0.091	-	7.318	+	3.44	))
=	6.198

	Invested Capital		(A: 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	))
=	3.005	-	0.074	-	( 0.068	-	max(0, 0.074	-	0.115	+	0.068	))
=	2.89

Supernova Digital Assets's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	-11.76 * ( 1 - 0% )	/	( (4.232	+	2.89)	/ 2 )
=	-11.76	/	3.561
=	-330.24 %

where

	Invested Capital		(Q: Apr. 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	))
=	11.753	-	6.321	-	( 7.432	-	max(0, 6.321	-	7.521	+	7.432	))
=	4.232

	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	))
=	3.005	-	0.074	-	( 0.068	-	max(0, 0.074	-	0.115	+	0.068	))
=	2.89

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

Supernova Digital Assets (AQSE:SOL) 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, Supernova Digital Assets's WACC % is 3.32%. Supernova Digital Assets's ROC % is -160.86% (calculated using TTM income statement data). Supernova Digital Assets 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.

Supernova Digital Assets ROC % Related Terms

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Supernova Digital Assets (AQSE:SOL) Business Description

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16 Great Queen Street, 9th Floor, London, GBR, WC2B 5DG

Website

https://www.aqruplc.com

AQRU PLC is an investment company specializing in decentralized finance (DeFi). DeFi is a disruptive technology that uses the blockchain and cryptocurrencies to remove financial intermediaries from transactions creating a more efficient and secure way of providing financial services. Geographically company generates the majority of its revenue from Europe.