INX Digital Co (NEOE:INXD) ROC % : -28.52% (As of Sep. 2024)

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What is INX Digital Co 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 %. INX Digital Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -28.52%.

As of today (2025-03-14), INX Digital Co's WACC % is 14.13%. INX Digital Co's ROC % is -23.54% (calculated using TTM income statement data). INX Digital Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

INX Digital Co ROC % Historical Data

The historical data trend for INX Digital Co'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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INX Digital Co ROC % Chart

INX Digital Co Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-12.87

-12.79

-24.48

INX Digital Co Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial											-20.20	-23.76	-18.21	-24.10	-28.52

INX Digital Co ROC % Calculation

INX Digital Co'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 )
=	-24.278 * ( 1 - -1.58% )	/	( (112.549	+	88.94)	/ 2 )
=	-24.6615924	/	100.7445
=	-24.48 %

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	))
=	110.635	-	6.888	-	( 58.918	-	max(0, 86.966	-	78.164	+	58.918	))
=	112.549

	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	))
=	100.389	-	8.515	-	( 54.175	-	max(0, 83.423	-	86.357	+	54.175	))
=	88.94

INX Digital Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-17.956 * ( 1 - 0.02% )	/	( (82.436	+	43.466)	/ 2 )
=	-17.9524088	/	62.951
=	-28.52 %

where

	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	))
=	98.011	-	11.209	-	( 49.656	-	max(0, 80.339	-	84.705	+	49.656	))
=	82.436

	Invested Capital		(Q: Sep. 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	))
=	92.008	-	9.39	-	( 39.152	-	max(0, 35.31	-	78.957	+	39.152	))
=	43.466

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

INX Digital Co (NEOE:INXD) 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, INX Digital Co's WACC % is 14.13%. INX Digital Co's ROC % is -23.54% (calculated using TTM income statement data). INX Digital Co 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.

INX Digital Co ROC % Related Terms

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INX Digital Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » INX Digital Co Inc (NEOE:INXD) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

INXDF:USA FN4:Germany

Address

5th Sapir Street, Herzelia, ISR, V6C 0A3

Website

https://www.inx.co

INX Digital Co Inc is engaged in the operation and ongoing development of comprehensive infrastructure and regulated solutions for trading and investing in blockchain assets as well as utilizing digital assets as a form of payment. The Company operates in two segments namely Digital asset segment and Brokerage segment. It derives maximum revenue from Digital Asset Segment. The company also facilitates financial transactions between banks across globe and offers a full range of brokerage services to several banking institutions world-wide, mainly in foreign exchange and interest rate derivatives.

Executives

Shy Datika	10% Security Holder, Director, Senior Officer
Renata Szkoda	Senior Officer

INX Digital Co Headlines

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