DLT Resolution (DLT Resolution) ROC % : -19.17% (As of Jun. 2023)

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What is DLT Resolution 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 %. DLT Resolution's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -19.17%.

As of today (2024-06-09), DLT Resolution's WACC % is 26.16%. DLT Resolution's ROC % is -4.57% (calculated using TTM income statement data). DLT Resolution earns returns that do not match up to its cost of capital. It will destroy value as it grows.

DLT Resolution ROC % Historical Data

The historical data trend for DLT Resolution'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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DLT Resolution ROC % Chart

DLT Resolution Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-33.89

-26.56

-7.91

-3.88

-10.53

DLT Resolution Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROC %	Get a 7-Day Free Trial															-34.75	-4.62	-1.82	-3.56	-19.17

DLT Resolution ROC % Calculation

DLT Resolution's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-0.173 * ( 1 - 0% )	/	( (2.173	+	1.114)	/ 2 )
=	-0.173	/	1.6435
=	-10.53 %

where

	Invested Capital		(A: Dec. 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	))
=	1.359	-	0.33	-	( 0.03	-	max(0, 1.223	-	0.079	+	0.03	))
=	2.173

	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	))
=	0.326	-	0.34	-	( 0.012	-	max(0, 1.198	-	0.07	+	0.012	))
=	1.114

DLT Resolution's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.044 * ( 1 - 0% )	/	( (0.235	+	0.224)	/ 2 )
=	-0.044	/	0.2295
=	-19.17 %

where

	Invested Capital		(Q: Mar. 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	))
=	0.153	-	0.268	-	( 0.004	-	max(0, 0.379	-	0.029	+	0.004	))
=	0.235

	Invested Capital		(Q: Jun. 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	))
=	0.146	-	0.272	-	( 0.014	-	max(0, 0.384	-	0.034	+	0.014	))
=	0.224

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

DLT Resolution (OTCPK:DLTI) 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, DLT Resolution's WACC % is 26.16%. DLT Resolution's ROC % is -4.57% (calculated using TTM income statement data). DLT Resolution 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.

DLT Resolution ROC % Related Terms

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DLT Resolution (DLT Resolution) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

5940 South Rainbow Boulevard, Suite 400-32132, Las Vegas, NV, USA, 89118

Website

https://www.dltresolution.com

DLT Resolution Inc operates in three industry segments: Blockchain Applications; Telecommunications; and Data Services which includes Image Capture, Data Collection, Data Phone Center Services, and Payment Processing. It offers secure data management, Information Technology (IT) and other telecommunications services in Canada and the United States. The company helps organizations that have invoices, ledgers, statements, applications, surveys, employee and customer rewards programs and a wide range of other non-core functions benefit from data management. It also operates a Health Information Exchange providing the ability to request and retrieve medical information & records while meeting all of today's Security & Compliance demands for HIPAA, PIPEDA and PHIPA.