CRPHY (Ceres Power Holdings) ROC % : -49.31% (As of Jun. 2024)

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What is Ceres Power Holdings 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 %. Ceres Power Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -49.31%.

As of today (2024-12-11), Ceres Power Holdings's WACC % is 19.65%. Ceres Power Holdings's ROC % is -69.54% (calculated using TTM income statement data). Ceres Power Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ceres Power Holdings ROC % Historical Data

The historical data trend for Ceres Power Holdings'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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Ceres Power Holdings ROC % Chart

Ceres Power Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Dec20

Dec21

Dec22

Dec23

ROC %

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-36.29

-44.12

-78.02

-88.72

Ceres Power Holdings Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-83.71	-81.22	-78.91	-90.59	-49.31

Ceres Power Holdings ROC % Calculation

Ceres Power Holdings'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 )
=	-75.191 * ( 1 - -0.74% )	/	( (88.006	+	82.756)	/ 2 )
=	-75.7474134	/	85.381
=	-88.72 %

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	))
=	316.086	-	6.009	-	( 222.071	-	max(0, 24.495	-	260.65	+	222.071	))
=	88.006

	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	))
=	261.23	-	6.308	-	( 177.159	-	max(0, 25.561	-	197.727	+	177.159	))
=	82.756

Ceres Power Holdings'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 )
=	-35.006 * ( 1 - -16.65% )	/	( (82.756	+	82.853)	/ 2 )
=	-40.834499	/	82.8045
=	-49.31 %

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	))
=	261.23	-	6.308	-	( 177.159	-	max(0, 25.561	-	197.727	+	177.159	))
=	82.756

	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	))
=	251.466	-	9.565	-	( 160.422	-	max(0, 29.025	-	188.073	+	160.422	))
=	82.853

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

Ceres Power Holdings (OTCPK:CRPHY) 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, Ceres Power Holdings's WACC % is 19.65%. Ceres Power Holdings's ROC % is -69.54% (calculated using TTM income statement data). Ceres Power Holdings 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.

Ceres Power Holdings ROC % Related Terms

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Ceres Power Holdings Business Description

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Address

Foundry Lane, Viking House, Horsham, West Sussex, GBR, RH13 5PX

Website

https://www.cerespower.com

Ceres Power Holdings PLC is a UK- based technology solutions provider. It is one of the developers of fuel cell technology, which enables the production of clean & low-cost energy. Its SteelCell technology uses the existing infrastructure of mains natural gas & is manufactured using commodity materials, such as steel. It mainly caters to the automotive industry. Among its other markets are transportation, commercial, & light industrial sectors. The group established a leading technology position in solid oxide fuel cell (SOFC) power systems & develop solid oxide electrolysis (SOEC) to demonstrate it at a megawatt scale. The Company has identified two reporting segments, Power (SOFC) & Hydrogen (SOEC), the majority is from the Power (SOFC) segment. Geographically, the majority is from Asia.