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Aequi Acquisition (Aequi Acquisition) ROC % : -2.29% (As of Mar. 2023)


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What is Aequi 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 %. Aequi Acquisition's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was -2.29%.

As of today (2024-06-15), Aequi Acquisition's WACC % is 10.14%. Aequi Acquisition's ROC % is -0.81% (calculated using TTM income statement data). Aequi Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Aequi Acquisition ROC % Historical Data

The historical data trend for Aequi 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.

* Premium members only.

Aequi Acquisition ROC % Chart

Aequi Acquisition Annual Data
Trend Dec20 Dec21 Dec22
ROC %
- -0.44 -1.02

Aequi Acquisition Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -0.32 -0.33 -0.28 -2.05 -2.29

Aequi Acquisition ROC % Calculation

Aequi Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-1.424 * ( 1 - 4.28% )/( (230.154 + 36.453)/ 2 )
=-1.3630528/133.3035
=-1.02 %

where

Aequi Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

ROC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=-0.78 * ( 1 - -7.57% )/( (36.453 + 36.738)/ 2 )
=-0.839046/36.5955
=-2.29 %

where

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

* 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.


Aequi Acquisition  (NAS:ARBG) 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, Aequi Acquisition's WACC % is 10.14%. Aequi Acquisition's ROC % is -0.81% (calculated using TTM income statement data). Aequi 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.


Aequi Acquisition ROC % Related Terms

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Aequi Acquisition (Aequi Acquisition) Business Description

Traded in Other Exchanges
N/A
Address
500 West Putnam Avenue, Suite 400, Greenwich, CT, USA, 06830
Website
Aequi Acquisition Corp is a blank check company. It is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Executives
Susan Hassan director, officer: Chief Operating Officer 500 WEST PUTNAM AVENUE, SUITE 400, GREENWICH CT 06830
Merline Saintil director 10 SOUTH FIRST AVENUE, WALLA WALLA WA 99362
Roy Swan director 75 WEST 125TH STREET, NEW YORK NY 10027
Hope S Taitz director, 10 percent owner, officer: Chief Executive Officer C/O ATHENE HOLDING LTD., WASHINGTON HOUSE, 16 CHURCH STREET, HAMILTON D0 HM 11
Jason Scheir director GENCO SHIPPING & TRADING LIMITED, 299 PARK AVE, 12TH FLOOR, NEW YORK NY 10171
Emil K. Woods director C/O CEDAR HILL CAPITAL PARTNERS, LLC, 445 PARK AVE., 5TH FLOOR, NEW YORK NY 10022
Aequi Sponsor Llc 10 percent owner 9 DAVIS DRIVE, ARMONK NY 10504
Joy Seppala director, officer: Chief Financial Officer 500 WEST PUTNAM AVENUE, SUITE 400, GREENWICH CT 06830
Fatou Sagnang director 500 WEST PUTNAM AVENUE, SUITE 400, GREENWICH CT 06830