GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Clean Teq Water Ltd (ASX:CNQ) » Definitions » ROC %

Clean Teq Water (ASX:CNQ) ROC % : -62.38% (As of Jun. 2024)


View and export this data going back to 2021. Start your Free Trial

What is Clean Teq Water 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 %. Clean Teq Water's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -62.38%.

As of today (2025-01-18), Clean Teq Water's WACC % is 11.66%. Clean Teq Water's ROC % is -67.27% (calculated using TTM income statement data). Clean Teq Water earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Clean Teq Water ROC % Historical Data

The historical data trend for Clean Teq Water'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.

Clean Teq Water ROC % Chart

Clean Teq Water Annual Data
Trend Jun22 Jun23 Jun24
ROC %
-248.69 -132.64 -76.62

Clean Teq Water Semi-Annual Data
Dec20 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial - -111.32 -121.60 -64.70 -62.38

Clean Teq Water ROC % Calculation

Clean Teq Water's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=-5.85 * ( 1 - 0% )/( (5.47 + 9.8)/ 2 )
=-5.85/7.635
=-76.62 %

where

Clean Teq Water's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-6.43 * ( 1 - 0% )/( (10.815 + 9.8)/ 2 )
=-6.43/10.3075
=-62.38 %

where

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.


Clean Teq Water  (ASX:CNQ) 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, Clean Teq Water's WACC % is 11.66%. Clean Teq Water's ROC % is -67.27% (calculated using TTM income statement data). Clean Teq Water 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.


Clean Teq Water ROC % Related Terms

Thank you for viewing the detailed overview of Clean Teq Water's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Clean Teq Water Business Description

Traded in Other Exchanges
Address
21 Howleys Road, Unit 12, Notting Hill, VIC, AUS, 3168
Clean Teq Water Ltd provides inventive metals recovery and water treatment solutions for governments and companies. Its technology solutions include desalination, nutrient removal, zero liquid discharge and hardness removal. It focuses on sectors such as municipal wastewater, surface water, industrial wastewater and mining process water. The company has offices and laboratories in Melbourne, Perth, Beijing and Tianjin, and partner offices in Africa and Latin America.