Xeros Technology Group (FRA:2X40) ROC % : -429.16% (As of Jun. 2024)

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What is Xeros Technology Group 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 %. Xeros Technology Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -429.16%.

As of today (2024-12-14), Xeros Technology Group's WACC % is 11.12%. Xeros Technology Group's ROC % is -365.10% (calculated using TTM income statement data). Xeros Technology Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xeros Technology Group ROC % Historical Data

The historical data trend for Xeros Technology Group'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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Xeros Technology Group ROC % Chart

Xeros Technology Group Annual Data

Trend

Jul13

Jul14

Jul15

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-354.05

-503.71

-1,073.60

-572.07

-313.26

Xeros Technology Group Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jun16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-952.57	-458.73	-451.67	-279.35	-429.16

Xeros Technology Group ROC % Calculation

Xeros Technology Group'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 )
=	-5.483 * ( 1 - 10.9% )	/	( (1.706	+	1.413)	/ 2 )
=	-4.885353	/	1.5595
=	-313.26 %

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	))
=	9.023	-	0.758	-	( 7.438	-	max(0, 1.513	-	8.072	+	7.438	))
=	1.706

	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	))
=	3.495	-	0.378	-	( 1.856	-	max(0, 0.745	-	2.449	+	1.856	))
=	1.413

Xeros Technology Group'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 )
=	-5.976 * ( 1 - 0% )	/	( (1.413	+	1.372)	/ 2 )
=	-5.976	/	1.3925
=	-429.16 %

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	))
=	3.495	-	0.378	-	( 1.856	-	max(0, 0.745	-	2.449	+	1.856	))
=	1.413

	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	))
=	7.505	-	0.56	-	( 5.573	-	max(0, 0.857	-	6.53	+	5.573	))
=	1.372

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

Xeros Technology Group (FRA:2X40) 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, Xeros Technology Group's WACC % is 11.12%. Xeros Technology Group's ROC % is -365.10% (calculated using TTM income statement data). Xeros Technology Group 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.

Xeros Technology Group ROC % Related Terms

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Xeros Technology Group Business Description

Industry

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XSG:UK

Address

Unit 2, Evolution, Advanced Manufacturing Park, Whittle Way, Catcliffe, Rotherham, South Yorkshire, GBR, S60 5BL

Website

https://www.xerostech.com

Xeros Technology Group PLC develops patented polymer bead systems with multiple identified potential commercial applications which are used mostly in the commercial laundry market. It has begun the rollout of 25kg capacity washing machines that exclusively use the company's patented polymer bead cleaning system. In addition to the commercial laundry market, its polymer bead technologies have a range of potential applications in other industries including domestic laundry, leather processing, garment finishing, and metal cleaning. It has its operations in Europe and North America. It earns revenues from the sale/provision of polymer bead cleaning equipment, consumables, and services.

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