CoinShares International (CoinShares International) ROC % : -156.80% (As of Mar. 2024)

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What is CoinShares International 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 %. CoinShares International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -156.80%.

As of today (2024-06-09), CoinShares International's WACC % is 8.51%. CoinShares International's ROC % is -52.76% (calculated using TTM income statement data). CoinShares International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CoinShares International ROC % Historical Data

The historical data trend for CoinShares International'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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CoinShares International ROC % Chart

CoinShares International Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.91

0.44

2.32

1.38

2.02

CoinShares International Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-147.98	3.52	0.15	2.81	-156.80

CoinShares International ROC % Calculation

CoinShares International'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 )
=	48.122 * ( 1 - -0.13% )	/	( (1350.127	+	3423.89)	/ 2 )
=	48.1845586	/	2387.0085
=	2.02 %

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	))
=	1515.884	-	1.605	-	( 164.152	-	max(0, 1241.58	-	1440.58	+	164.152	))
=	1350.127

	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	))
=	3458.497	-	2.318	-	( 32.289	-	max(0, 3123.315	-	3379.358	+	32.289	))
=	3423.89

CoinShares International's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-6809.78 * ( 1 - -0.01% )	/	( (3423.89	+	5262.929)	/ 2 )
=	-6810.460978	/	4343.4095
=	-156.80 %

where

	Invested Capital		(Q: 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	))
=	3458.497	-	2.318	-	( 32.289	-	max(0, 3123.315	-	3379.358	+	32.289	))
=	3423.89

	Invested Capital		(Q: Mar. 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	))
=	5385.985	-	72.172	-	( 50.884	-	max(0, 5008.066	-	5298.731	+	50.884	))
=	5262.929

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

CoinShares International (OTCPK:CNSRF) 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, CoinShares International's WACC % is 8.51%. CoinShares International's ROC % is -52.76% (calculated using TTM income statement data). CoinShares International 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.

CoinShares International ROC % Related Terms

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CoinShares International (CoinShares International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » CoinShares International Ltd (OTCPK:CNSRF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CS:Sweden 3TW:Germany

Address

2 Hill Street, 2nd Floor, Saint Helier, JEY, JE2 4UA

Website

https://www.coinshares.com

CoinShares International Ltd is the European digital asset manager that delivers a broad range of financial services across investment management, trading, securities, and consumer products to a wide array of clients that includes corporations, financial institutions, and individuals. The Group comprises four core operating segments; Asset Management, Capital Markets, Principal Investments, and Consumer Solutions. The company derives a majority of its revenue from the Asset management segment.