BDCTF (BuildDirect.com Technologies) ROC % : -0.38% (As of Sep. 2024)

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What is BuildDirect.com Technologies 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 %. BuildDirect.com Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -0.38%.

As of today (2024-12-14), BuildDirect.com Technologies's WACC % is 8.56%. BuildDirect.com Technologies's ROC % is -8.52% (calculated using TTM income statement data). BuildDirect.com Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

BuildDirect.com Technologies ROC % Historical Data

The historical data trend for BuildDirect.com Technologies'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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BuildDirect.com Technologies ROC % Chart

BuildDirect.com Technologies Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-22.27

-32.96

-10.40

-3.69

BuildDirect.com Technologies Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial													1.16	-15.66	-9.11	-7.39	-0.38

BuildDirect.com Technologies ROC % Calculation

BuildDirect.com Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.74 * ( 1 - -7.99% )	/	( (26.909	+	16.427)	/ 2 )
=	-0.799126	/	21.668
=	-3.69 %

where

	Invested Capital		(A: Dec. 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	))
=	33.991	-	5.475	-	( 4.426	-	max(0, 15.345	-	16.952	+	4.426	))
=	26.909

	Invested Capital		(A: Dec. 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	))
=	25.358	-	6.106	-	( 3.047	-	max(0, 11.779	-	14.604	+	3.047	))
=	16.427

BuildDirect.com Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.044 * ( 1 - -21.45% )	/	( (14.422	+	13.642)	/ 2 )
=	-0.053438	/	14.032
=	-0.38 %

where

	Invested Capital		(Q: Jun. 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	))
=	22.987	-	5.796	-	( 2.769	-	max(0, 10.679	-	13.585	+	2.769	))
=	14.422

	Invested Capital		(Q: Sep. 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	))
=	25.823	-	9.49	-	( 3.083	-	max(0, 14.383	-	17.074	+	3.083	))
=	13.642

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

BuildDirect.com Technologies (OTCPK:BDCTF) 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, BuildDirect.com Technologies's WACC % is 8.56%. BuildDirect.com Technologies's ROC % is -8.52% (calculated using TTM income statement data). BuildDirect.com Technologies 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.

BuildDirect.com Technologies ROC % Related Terms

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BuildDirect.com Technologies Business Description

Industry

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Traded in Other Exchanges

BILD:Canada

Address

200 Granville Street, Suite 90, Vancouver, BC, CAN, V6C 1S4

Website

https://www.builddirect.com

BuildDirect.com Technologies Inc is a marketplace for purchasing and selling building materials online. It has two operating segments, BuildDirect.com and Independent Retailers. The platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking, and more. It generates the majority of the revenue from BuildDirect.com in the United States region.