Grayscale Bitcoin Cash TR BCH (Grayscale Bitcoin Cash TR BCH) ROC % : 146.58% (As of Mar. 2021)

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What is Grayscale Bitcoin Cash TR BCH 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 %. Grayscale Bitcoin Cash TR BCH's annualized return on capital (ROC %) for the quarter that ended in Mar. 2021 was 146.58%.

As of today (2024-06-09), Grayscale Bitcoin Cash TR BCH's WACC % is 0.00%. Grayscale Bitcoin Cash TR BCH's ROC % is 0.00% (calculated using TTM income statement data). Grayscale Bitcoin Cash TR BCH earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grayscale Bitcoin Cash TR BCH ROC % Historical Data

The historical data trend for Grayscale Bitcoin Cash TR BCH'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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Grayscale Bitcoin Cash TR BCH ROC % Chart

Grayscale Bitcoin Cash TR BCH Annual Data

Trend

Jun18

Jun19

Jun20

ROC %

-60.38

-58.38

Grayscale Bitcoin Cash TR BCH Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
ROC %	Get a 7-Day Free Trial			-	-26.46	-128.30	157.90	146.58

Grayscale Bitcoin Cash TR BCH ROC % Calculation

Grayscale Bitcoin Cash TR BCH's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

	ROC % (A: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2019 )	+	Invested Capital (A: Jun. 2020 ))	/ count )
=	-3.574 * ( 1 - 0% )	/	( (6.559	+	5.685)	/ 2 )
=	-3.574	/	6.122
=	-58.38 %

where

	Invested Capital		(A: Jun. 2019 )
=	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	))
=	6.559	-	0.119	-	( 0	-	max(0, 0.119	-	0	+	0	))
=	6.559

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	5.685	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	5.685

Grayscale Bitcoin Cash TR BCH's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	173.404 * ( 1 - 0% )	/	( (81.859	+	154.736)	/ 2 )
=	173.404	/	118.2975
=	146.58 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	81.859	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	81.859

	Invested Capital		(Q: Mar. 2021 )
=	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	))
=	154.736	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	154.736

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

Grayscale Bitcoin Cash TR BCH (OTCPK:BCHG) 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, Grayscale Bitcoin Cash TR BCH's WACC % is 0.00%. Grayscale Bitcoin Cash TR BCH's ROC % is 0.00% (calculated using TTM income statement data). Grayscale Bitcoin Cash TR BCH 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.

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Grayscale Bitcoin Cash TR BCH (Grayscale Bitcoin Cash TR BCH) Business Description

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Address

250 Park Avenue South, New York, NY, USA, 10003

Website

https://www.grayscale.co

Grayscale Bitcoin Cash TR BCH provides platform for digital currency investing. It provides investment products like single-asset, diversified, large cap funds, and others. The company operates as a digital currency asset manager.