BIGG Digital Assets (TSXV:BIGG) ROC % : -31.76% (As of Sep. 2024)

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What is BIGG Digital Assets 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 %. BIGG Digital Assets's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -31.76%.

As of today (2024-12-15), BIGG Digital Assets's WACC % is 17.46%. BIGG Digital Assets's ROC % is -6.93% (calculated using TTM income statement data). BIGG Digital Assets earns returns that do not match up to its cost of capital. It will destroy value as it grows.

BIGG Digital Assets ROC % Historical Data

The historical data trend for BIGG Digital Assets'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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BIGG Digital Assets ROC % Chart

BIGG Digital Assets Annual Data

Trend

Sep15

Sep16

Sep17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-269.64

-44.88

-14.81

-31.53

-10.32

BIGG Digital Assets 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															-15.37	8.47	6.83	-12.47	-31.76

BIGG Digital Assets ROC % Calculation

BIGG Digital Assets'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 )
=	-9.113 * ( 1 - 1.21% )	/	( (58.169	+	116.384)	/ 2 )
=	-9.0027327	/	87.2765
=	-10.32 %

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	))
=	67.403	-	3.556	-	( 5.678	-	max(0, 44.275	-	53.884	+	5.678	))
=	58.169

	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	))
=	124.189	-	3.5	-	( 4.305	-	max(0, 91.605	-	103.658	+	4.305	))
=	116.384

BIGG Digital Assets'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 )
=	-22.496 * ( 1 - -101.35% )	/	( (145.713	+	139.564)	/ 2 )
=	-45.295696	/	142.6385
=	-31.76 %

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	))
=	156.7	-	2.546	-	( 8.441	-	max(0, 117.445	-	133.355	+	8.441	))
=	145.713

	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	))
=	147.22	-	3.714	-	( 6.005	-	max(0, 120.055	-	123.997	+	6.005	))
=	139.564

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

BIGG Digital Assets (TSXV:BIGG) 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, BIGG Digital Assets's WACC % is 17.46%. BIGG Digital Assets's ROC % is -6.93% (calculated using TTM income statement data). BIGG Digital Assets 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.

BIGG Digital Assets ROC % Related Terms

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BIGG Digital Assets Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » BIGG Digital Assets Inc (TSXV:BIGG) » Definitions » ROC %

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Traded in Other Exchanges

BBKCF:USA 7111:Germany

Address

1130 West Pender Street, Suite 220, Vancouver, BC, CAN, V6E 4A4

Website

https://www.biggdigitalassets.com

BIGG Digital Assets Inc is engaged in investing in products and companies within the cryptocurrency industry. The company has three operating divisions which provide blockchain search products to large enterprises with data requirements in the financial and e-commerce sectors globally, and brokerage and exchange software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor with a focus on compliance and safety, and immersive metaverse experiences. The company operates two business segments: Blockchain Technology Development, Digital Currency Sales via the Netcoins App, and Immersive Metaverse Experiences.

Executives

Daniel Reitzik	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Mark Binns	Director
Kalle Radage	Director
Lance Morginn	Director
Mitchell Demeter	Director
Diana Kim Evans	Director
Thomas John Kennedy	Director
Robert Laird Birmingham	Director
Shone Tyler Anstey	Director
Bigg Digital Assets Inc	Issuer