Infinity Stone Ventures (FRA:B2IA) ROC % : -18.36% (As of May. 2023)

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What is Infinity Stone Ventures 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 %. Infinity Stone Ventures's annualized return on capital (ROC %) for the quarter that ended in May. 2023 was -18.36%.

As of today (2024-05-20), Infinity Stone Ventures's WACC % is 6.87%. Infinity Stone Ventures's ROC % is -48.31% (calculated using TTM income statement data). Infinity Stone Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Infinity Stone Ventures ROC % Historical Data

The historical data trend for Infinity Stone Ventures'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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Infinity Stone Ventures ROC % Chart

Infinity Stone Ventures Annual Data

Trend

Aug21

Aug22

ROC %

-157.40

-52.37

Infinity Stone Ventures Quarterly Data
	May20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23
ROC %	Get a 7-Day Free Trial							-51.94	-48.94	-73.01	-54.25	-18.36

Infinity Stone Ventures ROC % Calculation

Infinity Stone Ventures's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2022 is calculated as:

	ROC % (A: Aug. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2021 )	+	Invested Capital (A: Aug. 2022 ))	/ count )
=	-2.506 * ( 1 - 0% )	/	( (3.768	+	5.803)	/ 2 )
=	-2.506	/	4.7855
=	-52.37 %

where

	Invested Capital		(A: Aug. 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	))
=	0.231	-	2.225	-	( 0.037	-	max(0, 5.966	-	0.204	+	0.037	))
=	3.768

	Invested Capital		(A: Aug. 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	))
=	1.783	-	2.993	-	( 0.357	-	max(0, 7.741	-	0.728	+	0.357	))
=	5.803

Infinity Stone Ventures's annualized Return on Capital (ROC %) for the quarter that ended in May. 2023 is calculated as:

	ROC % (Q: May. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: May. 2023 ))	/ count )
=	-1.232 * ( 1 - 0% )	/	( (6.715	+	6.709)	/ 2 )
=	-1.232	/	6.712
=	-18.36 %

where

	Invested Capital		(Q: Feb. 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	))
=	2.621	-	0.809	-	( 0.081	-	max(0, 5.253	-	0.35	+	0.081	))
=	6.715

	Invested Capital		(Q: May. 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	))
=	2.54	-	0.704	-	( 0.001	-	max(0, 5.076	-	0.203	+	0.001	))
=	6.709

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

Infinity Stone Ventures (FRA:B2IA) 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, Infinity Stone Ventures's WACC % is 6.87%. Infinity Stone Ventures's ROC % is -48.31% (calculated using TTM income statement data). Infinity Stone Ventures 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.

Infinity Stone Ventures ROC % Related Terms

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Infinity Stone Ventures (FRA:B2IA) Business Description

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GEMSF:USA B2IA:Germany GEMS:Canada

Address

750 - 1095 West Pender Street, Vancouver, BC, CAN, V6E 2M6

Website

https://www.infinitystone.ventures

Infinity Stone Ventures Corp is engaged in the development of battery metals projects to fuel the green revolution, alongside a diversified portfolio of SaaS solutions, thereby delivering solutions across industries to its customers. The company's primary business units include Health Check and the energy metals portfolio. Geographically, it operates in Canada and USA. The Company is engaged in the development, marketing, and commercialization of contact tracing solutions. It is a technology company developing and delivering SaaS solutions for the public and private sectors. It integrates data collection and management (Smart Health RM), communications (Smart Connect), advertising (Engagency), and IoT devices (Smart Check).

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