Trade Window Holdings (NZSE:TWL) ROC % : -39.49% (As of Sep. 2024)

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What is Trade Window Holdings 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 %. Trade Window Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -39.49%.

As of today (2024-12-14), Trade Window Holdings's WACC % is 9.09%. Trade Window Holdings's ROC % is -47.36% (calculated using TTM income statement data). Trade Window Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Trade Window Holdings ROC % Historical Data

The historical data trend for Trade Window Holdings'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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Trade Window Holdings ROC % Chart

Trade Window Holdings Annual Data

Trend

Mar22

Mar23

Mar24

ROC %

-114.52

-99.38

-65.78

Trade Window Holdings Semi-Annual Data
	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial			-98.79	-61.47	-74.79	-55.26	-39.49

Trade Window Holdings ROC % Calculation

Trade Window Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-9.712 * ( 1 - -0.06% )	/	( (17.179	+	12.367)	/ 2 )
=	-9.7178272	/	14.773
=	-65.78 %

where

	Invested Capital		(A: Mar. 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	))
=	22.531	-	2.06	-	( 6.148	-	max(0, 4.73	-	8.022	+	6.148	))
=	17.179

	Invested Capital		(A: 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	))
=	12.774	-	1.366	-	( 0.188	-	max(0, 2.151	-	1.192	+	0.188	))
=	12.367

Trade Window Holdings'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: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-4.73 * ( 1 - 0% )	/	( (12.367	+	11.589)	/ 2 )
=	-4.73	/	11.978
=	-39.49 %

where

	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	))
=	12.774	-	1.366	-	( 0.188	-	max(0, 2.151	-	1.192	+	0.188	))
=	12.367

	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	))
=	12.113	-	1.256	-	( 0.505	-	max(0, 2.186	-	1.454	+	0.505	))
=	11.589

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

Trade Window Holdings (NZSE:TWL) 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, Trade Window Holdings's WACC % is 9.09%. Trade Window Holdings's ROC % is -47.36% (calculated using TTM income statement data). Trade Window Holdings 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.

Trade Window Holdings ROC % Related Terms

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Trade Window Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Trade Window Holdings Ltd (NZSE:TWL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

31 Northcroft Street, Suite 4, The Maison, Takapuna, Auckland, NZL, 0622

Website

https://www.tradewindow.io

Trade Window Holdings Ltd develops and commercializes technology solutions that provide international trade participants with a secure platform and tools to establish trust and trade globally in an efficient manner across interconnected networks. The company's platform Cube connects the commercial, financial, logistics, and government data silos that make up global supply chains.

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