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SPRU (Spruce Power Holding) ROC % : -1.03% (As of Sep. 2024)


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What is Spruce Power Holding 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 %. Spruce Power Holding's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -1.03%.

As of today (2025-03-15), Spruce Power Holding's WACC % is 7.09%. Spruce Power Holding's ROC % is -2.52% (calculated using TTM income statement data). Spruce Power Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Spruce Power Holding ROC % Historical Data

The historical data trend for Spruce Power Holding'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.

Spruce Power Holding ROC % Chart

Spruce Power Holding Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
-89.92 -124.90 -158.49 -19.05 -2.14

Spruce Power Holding Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.57 -4.30 -2.23 -2.40 -1.03

Spruce Power Holding ROC % Calculation

Spruce Power Holding'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 )
=-14.076 * ( 1 - 0% )/( (593.607 + 724.875)/ 2 )
=-14.076/659.241
=-2.14 %

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))
=826.552 - 17.686 - ( 220.321 - max(0, 59.697 - 274.956+220.321))
=593.607

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))
=895.021 - 38.517 - ( 141.354 - max(0, 71.712 - 203.341+141.354))
=724.875

Spruce Power Holding'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 )
=-7.2 * ( 1 - 0% )/( (723.753 + 669.63)/ 2 )
=-7.2/696.6915
=-1.03 %

where

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))
=806.774 - 26.946 - ( 113.658 - max(0, 62.808 - 173.006+113.658))
=669.63

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


Spruce Power Holding  (NYSE:SPRU) 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, Spruce Power Holding's WACC % is 7.09%. Spruce Power Holding's ROC % is -2.52% (calculated using TTM income statement data). Spruce Power Holding 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.


Spruce Power Holding ROC % Related Terms

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Spruce Power Holding Business Description

Traded in Other Exchanges
N/A
Address
2000 S Colorado Boulevard, Suite 2-825, Denver, CO, USA, 80222
Spruce Power Holding Corp is a leading owner and operator of distributed solar energy assets across the United States (the U.S.), offering subscription-based services to approximately 75,000 home solar assets and customer contracts, making renewable energy more accessible to everyone. The Company's primary customers are homeowners and the Company's core solar service offerings generate revenues primarily through (i) the sale of electricity generated by its home solar energy systems to homeowners, (ii) third-party contracts to sell solar renewable energy credits (SRECs) generated by the solar energy systems for fixed prices and (iii) the servicing of those agreements for other institutional owners of home solar energy systems.
Executives
Eric M. Tech director, officer: CEO 2701 NAVISTAR DRIVE, LISLE IL 60532
John P. Miller director 26W073 MOHICAN DRIVE, WHEATON IL 60189
Christopher M. Hayes director C/O XL HYBRIDS, INC., 145 NEWTON STREET, BOSTON MA 02135
Jonathan J Ledecky director C/O THE LEDECKY FOUNDATION, 901 - 15TH STREET, NW, SUITE 950, WASHINGTON DC 20005
Kevin Griffin director C/O PIVOTAL ACQUISITION CORP., C/O GRAUBARD MILLER, 405 LEXINGTON AVE, NEW YORK NY 10174
Christian S. Fong director, officer: President and CEO 7550 WISCONSIN AVENUE, 9TH FLOOR, BETHESDA MD 20814
Jonathan M Norling officer: Chief Legal Officer 820 GESSNER ROAD, SUITE 500, HOUSTON TX 77024
Sarah Weber Wells officer: SVP of Fin & Acc & Sustain' 820 GESSNER ROAD, SUITE 500, HOUSTON TX 77024
Stacey Constas officer: General Counsel 47000 LIBERTY DRIVE, WIXOM MI 48393
Michael Kenhard officer: CTO and VP of Engineering 47000 LIBERTY DRIVE, WIXOM MI 48393
Calhoun Colleen officer: VP / GM of XL Grid 515 W. GREENS ROAD, SUITE 1200, HOUSTON TX 77067
Donald P Klein officer: Chief Financial Officer 201 MITTEL DRIVE, WOOD DALE IL 60191
Cielo Hernandez officer: Chief Financial Officer C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Berklas James P Jr officer: General Counsel 123 MAIN STREET, BRISTOL CT 06010
Sarah Sclarsic director C/O PIVOTAL INVESTMENT CORPORATION II, C/O GRAUBARD MILLER, 405 LEXINGTON AVE, NEW YORK NY 10174