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Mindflair (LSE:MFAI) ROC % : -25.23% (As of Jun. 2024)


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What is Mindflair 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 %. Mindflair's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -25.23%.

As of today (2024-12-14), Mindflair's WACC % is 10.52%. Mindflair's ROC % is -186.23% (calculated using TTM income statement data). Mindflair earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Mindflair ROC % Historical Data

The historical data trend for Mindflair'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.

* Premium members only.

Mindflair ROC % Chart

Mindflair Annual Data
Trend Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -279.56 -507.96 -855.07 -256.84 -338.71

Mindflair Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -803.74 71.91 -293.26 -344.49 -25.23

Mindflair ROC % Calculation

Mindflair'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 )
=-2.669 * ( 1 - 0% )/( (0.178 + 1.398)/ 2 )
=-2.669/0.788
=-338.71 %

where

Mindflair'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 )
=-0.35 * ( 1 - 0% )/( (1.398 + 1.376)/ 2 )
=-0.35/1.387
=-25.23 %

where

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

* 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.


Mindflair  (LSE:MFAI) 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, Mindflair's WACC % is 10.52%. Mindflair's ROC % is -186.23% (calculated using TTM income statement data). Mindflair 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.


Mindflair ROC % Related Terms

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Mindflair Business Description

Traded in Other Exchanges
N/A
Address
107 Cheapside, 9th Floor, London, GBR, EC2V 6DN
Mindflair PLC is an investment company providing investors with access to a portfolio of next-generation technology businesses focused on AI with remarkable growth potential. The Company is building an investment portfolio of high-tech businesses across areas such as Artificial intelligence, the Internet of Things, Cyber Security, Machine Learning, Immersive Technologies and Big Data, which the Board believes demonstrate evidence of traction and the potential for exponential growth, due to increasing demand for development in these sectors.

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