IESVF (Invinity Energy Systems) ROC % : -65.15% (As of Jun. 2024)

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What is Invinity Energy Systems 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 %. Invinity Energy Systems's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -65.15%.

As of today (2024-12-12), Invinity Energy Systems's WACC % is 11.36%. Invinity Energy Systems's ROC % is -58.32% (calculated using TTM income statement data). Invinity Energy Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Invinity Energy Systems ROC % Historical Data

The historical data trend for Invinity Energy Systems'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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Invinity Energy Systems ROC % Chart

Invinity Energy Systems Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-45.68

-74.69

-60.30

-43.70

-58.36

Invinity Energy Systems Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial							-56.99	-33.16	-61.86	-53.45	-65.15

Invinity Energy Systems ROC % Calculation

Invinity Energy Systems'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 )
=	-28.391 * ( 1 - 0% )	/	( (53.42	+	43.87)	/ 2 )
=	-28.391	/	48.645
=	-58.36 %

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	))
=	64.659	-	4.982	-	( 6.257	-	max(0, 21.591	-	31.647	+	6.257	))
=	53.42

	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	))
=	53.127	-	2.91	-	( 6.347	-	max(0, 9.115	-	18.237	+	6.347	))
=	43.87

Invinity Energy Systems'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 )
=	-29.03 * ( 1 - 0% )	/	( (43.87	+	45.253)	/ 2 )
=	-29.03	/	44.5615
=	-65.15 %

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	))
=	53.127	-	2.91	-	( 6.347	-	max(0, 9.115	-	18.237	+	6.347	))
=	43.87

	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	))
=	110.766	-	2.863	-	( 62.65	-	max(0, 10.837	-	75.425	+	62.65	))
=	45.253

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

Invinity Energy Systems (OTCPK:IESVF) 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, Invinity Energy Systems's WACC % is 11.36%. Invinity Energy Systems's ROC % is -58.32% (calculated using TTM income statement data). Invinity Energy Systems 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.

Invinity Energy Systems ROC % Related Terms

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Invinity Energy Systems Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Invinity Energy Systems PLC (OTCPK:IESVF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

IES.GB:UK IES:UK J4Q5:Germany

Address

Castle Street, 3rd Floor, IFC5, St. Helier, JEY, JE2 3BY

Website

https://www.invinity.com

Invinity Energy Systems PLC operates in the manufacturing of vanadium flow battery systems and their related installation and other services. Its vanadium flow batteries are a form of heavy-duty, stationary energy storage, used in high-utilization applications such as being coupled with industrial-scale solar generation for distributed, low-carbon energy projects. The company's flow battery systems are ideal for commercial and industrial sites, grid network infrastructure projects, and off-grid applications, either standalone or alongside renewable energy such as solar PV. It generates the majority of its revenue from the sale of Battery systems and associated control systems. Its geographical segments are the United Kingdom, Asia, the United States, and Others.

Invinity Energy Systems Headlines

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