SVCO (Silvaco Group) ROC % : -13.02% (As of Dec. 2024)

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What is Silvaco Group 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 %. Silvaco Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -13.02%.

As of today (2025-03-13), Silvaco Group's WACC % is 10.66%. Silvaco Group's ROC % is -65.33% (calculated using TTM income statement data). Silvaco Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Silvaco Group ROC % Historical Data

The historical data trend for Silvaco Group'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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Silvaco Group ROC % Chart

Silvaco Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

11.43

-15.56

-8.09

-2.03

-58.88

Silvaco Group Quarterly Data
	Dec20	Dec21	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial							-23.21	17.02	-214.70	-62.55	-13.02

Silvaco Group ROC % Calculation

Silvaco Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-28.973 * ( 1 - -1.24% )	/	( (36.943	+	62.685)	/ 2 )
=	-29.3322652	/	49.814
=	-58.88 %

where

	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	))
=	40.885	-	8.047	-	( 4.421	-	max(0, 24.993	-	20.888	+	4.421	))
=	36.943

	Invested Capital		(A: Dec. 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	))
=	142.345	-	6.868	-	( 82.677	-	max(0, 34.488	-	107.28	+	82.677	))
=	62.685

Silvaco Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-5.432 * ( 1 - -21.05% )	/	( (38.358	+	62.685)	/ 2 )
=	-6.575436	/	50.5215
=	-13.02 %

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	))
=	146.455	-	29.951	-	( 100.388	-	max(0, 40.443	-	118.589	+	100.388	))
=	38.358

	Invested Capital		(Q: Dec. 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	))
=	142.345	-	6.868	-	( 82.677	-	max(0, 34.488	-	107.28	+	82.677	))
=	62.685

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

Silvaco Group (NAS:SVCO) 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, Silvaco Group's WACC % is 10.66%. Silvaco Group's ROC % is -65.33% (calculated using TTM income statement data). Silvaco Group 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.

Silvaco Group ROC % Related Terms

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Silvaco Group Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

4701 Patrick Henry Drive, Building No. 23, Santa Clara, CA, USA, 95054

Website

https://www.silvaco.com

Silvaco Group Inc is a provider of technology computer aided design ("TCAD") software, electronic data automation ("EDA") software and semiconductor intellectual property ("SIP"). TCAD, EDA and SIP solutions enable semiconductor and photonics companies to increase productivity, accelerate their products' time-to-market and reduce their development and manufacturing costs. It is developing the "technology behind the chip" and providing solutions that span from atoms to systems, starting with providing software for the atomic level simulation of semiconductor and photonics material for devices, to providing software and SIP for the design and analysis of circuits and system level solutions.