i-nexus Global (LSE:INX) ROC % : -10.37% (As of Mar. 2024)

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What is i-nexus Global 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 %. i-nexus Global's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -10.37%.

As of today (2024-12-12), i-nexus Global's WACC % is 9.91%. i-nexus Global's ROC % is -14.99% (calculated using TTM income statement data). i-nexus Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

i-nexus Global ROC % Historical Data

The historical data trend for i-nexus Global'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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i-nexus Global ROC % Chart

i-nexus Global Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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-138.04

-69.87

-22.59

-30.12

-26.07

i-nexus Global Semi-Annual Data
	Sep15	Sep16	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial											-14.30	-41.89	-29.64	-18.62	-10.37

i-nexus Global ROC % Calculation

i-nexus Global's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-0.839 * ( 1 - 23.01% )	/	( (2.458	+	2.497)	/ 2 )
=	-0.6459461	/	2.4775
=	-26.07 %

where

	Invested Capital		(A: Sep. 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	))
=	2.047	-	0.496	-	( 0.099	-	max(0, 2.012	-	1.105	+	0.099	))
=	2.458

	Invested Capital		(A: Sep. 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	))
=	2.003	-	0.478	-	( 0.267	-	max(0, 2.207	-	1.235	+	0.267	))
=	2.497

i-nexus Global's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-0.32 * ( 1 - 24.61% )	/	( (2.497	+	2.154)	/ 2 )
=	-0.241248	/	2.3255
=	-10.37 %

where

	Invested Capital		(Q: Sep. 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	))
=	2.003	-	0.478	-	( 0.267	-	max(0, 2.207	-	1.235	+	0.267	))
=	2.497

	Invested Capital		(Q: Mar. 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	))
=	1.55	-	0.43	-	( 0.25	-	max(0, 1.848	-	0.814	+	0.25	))
=	2.154

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

i-nexus Global (LSE:INX) 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, i-nexus Global's WACC % is 9.91%. i-nexus Global's ROC % is -14.99% (calculated using TTM income statement data). i-nexus Global 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.

i-nexus Global ROC % Related Terms

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i-nexus Global Business Description

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Address

27-28 Eastcastle Street, London, GBR, W1W 8DH

Website

https://www.i-nexus.com

i-nexus Global PLC is engaged in the development and sale of Enterprise cloud-based software on a software-as-a-service basis and associated maintenance, support, software customization, and professional consultancy services. The Group has single business segment and therefore all revenue is derived from Licence fee. Geographically, the company operates in United Kingdom, USA, Switzerland, Germany, Rest of Europe, Rest of the World; majority revenue being from USA.

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