Sparc AI (STU:5OV0) ROC % : -388.57% (As of Sep. 2024)

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What is Sparc AI 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 %. Sparc AI's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -388.57%.

As of today (2024-12-13), Sparc AI's WACC % is 3.13%. Sparc AI's ROC % is -714.44% (calculated using TTM income statement data). Sparc AI earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sparc AI ROC % Historical Data

The historical data trend for Sparc AI'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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Sparc AI ROC % Chart

Sparc AI Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-7.84

-71.41

-182.59

-122.29

-125.54

Sparc AI 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															-127.27	-2,272.67	-937.14	-457.14	-388.57

Sparc AI ROC % Calculation

Sparc AI'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 )
=	-0.435 * ( 1 - 0% )	/	( (0.675	+	0.018)	/ 2 )
=	-0.435	/	0.3465
=	-125.54 %

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	))
=	0.523	-	0.289	-	( 0.102	-	max(0, 0.805	-	0.364	+	0.102	))
=	0.675

	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	))
=	0.107	-	0.044	-	( 0.084	-	max(0, 0.044	-	0.089	+	0.084	))
=	0.018

Sparc AI'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 )
=	-0.204 * ( 1 - 0% )	/	( (0.032	+	0.073)	/ 2 )
=	-0.204	/	0.0525
=	-388.57 %

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	))
=	0.071	-	0.02	-	( 0.031	-	max(0, 0.02	-	0.039	+	0.031	))
=	0.032

	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	))
=	0.053	-	0.009	-	( 0.012	-	max(0, 0.052	-	0.023	+	0.012	))
=	0.073

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

Sparc AI (STU:5OV0) 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, Sparc AI's WACC % is 3.13%. Sparc AI's ROC % is -714.44% (calculated using TTM income statement data). Sparc AI 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.

Sparc AI ROC % Related Terms

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Sparc AI Business Description

Industry

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SPAIF:USA 5OV0:Germany SPAI:Canada

Address

71 Victoria Crescent, Building 17, Abbotsford, VIC, AUS, 3067

Website

https://www.eyefigroup.com

Sparc AI Inc Formerly EYEFI Group Technologies Inc is a software and electronics engineering company that has developed, patented and commercialized an innovative spatial technology; spatial, predictive, approximation and radial convolution (SPARC) and an associated product suite, that turns sensors, cameras and smartphones (fixed, mobile, airborne, portable or handheld) into geo-target co-ordinate acquisition devices. The company has also developed IIoT sensor hardware and associated cloud software, as a second pillar within its product offering. Its Cloud is a next-generation cloud platform that provides a secure and centralized environment where customers can manage their EYEfi product deployments and applications. It has one segment software and electronics engineering services.

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