Xtract One Technologies (TSX:XTRA) ROC % : -123.69% (As of Jan. 2024)

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What is Xtract One Technologies 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 %. Xtract One Technologies's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -123.69%.

As of today (2024-05-22), Xtract One Technologies's WACC % is 10.74%. Xtract One Technologies's ROC % is -139.78% (calculated using TTM income statement data). Xtract One Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xtract One Technologies ROC % Historical Data

The historical data trend for Xtract One Technologies'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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Xtract One Technologies ROC % Chart

Xtract One Technologies Annual Data

Trend

May14

May15

May16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROC %

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-197.73

-83.97

-33.41

-58.07

-177.98

Xtract One Technologies Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial															-192.59	-179.27	-152.72	-126.18	-123.69

Xtract One Technologies ROC % Calculation

Xtract One Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-15.973 * ( 1 - 0% )	/	( (9.142	+	8.807)	/ 2 )
=	-15.973	/	8.9745
=	-177.98 %

where

	Invested Capital		(A: Jul. 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	))
=	18.058	-	2.639	-	( 6.277	-	max(0, 3.156	-	9.947	+	6.277	))
=	9.142

	Invested Capital		(A: Jul. 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	))
=	18.999	-	2.519	-	( 8.327	-	max(0, 4.132	-	11.805	+	8.327	))
=	8.807

Xtract One Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-13.072 * ( 1 - 0% )	/	( (8.927	+	12.21)	/ 2 )
=	-13.072	/	10.5685
=	-123.69 %

where

	Invested Capital		(Q: Oct. 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	))
=	16.468	-	2.428	-	( 5.29	-	max(0, 4.002	-	9.115	+	5.29	))
=	8.927

	Invested Capital		(Q: Jan. 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	))
=	16.498	-	2.423	-	( 4.192	-	max(0, 7.181	-	9.046	+	4.192	))
=	12.21

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

Xtract One Technologies (TSX:XTRA) 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, Xtract One Technologies's WACC % is 10.74%. Xtract One Technologies's ROC % is -139.78% (calculated using TTM income statement data). Xtract One Technologies 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.

Xtract One Technologies ROC % Related Terms

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Xtract One Technologies (TSX:XTRA) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Xtract One Technologies Inc (TSX:XTRA) » Definitions » ROC %

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XTRAF:USA 0PL:Germany

Address

257 Adelaide Street West, Suite 400, Toronto, ON, CAN, M5H 1X9

Website

https://www.xtractone.com

Xtract One Technologies Inc is a leading technology-driven threat detection and security solution leveraging AI to provide seamless and secure patron access control experiences. The principal business of the Company is the development and commercialization of an integrated, layered, AI-powered threat detection gateway solution, referred to as the Platform, with the aim of enhancing public health and safety. The company makes unobtrusive threat detection systems that enable venue-building operators to prioritize and deliver improved patron experiences while providing unprecedented safety. Xtract One's innovative multi-sensor gateway product enables companies to covertly screen for weapons at points of entry without disrupting the flow of traffic.

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