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Cathedra Bitcoin (TSXV:CBIT) ROC % : -5.84% (As of Sep. 2024)


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What is Cathedra Bitcoin 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 %. Cathedra Bitcoin's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -5.84%.

As of today (2025-03-05), Cathedra Bitcoin's WACC % is 0.00%. Cathedra Bitcoin's ROC % is -1.46% (calculated using TTM income statement data). Cathedra Bitcoin earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Cathedra Bitcoin ROC % Historical Data

The historical data trend for Cathedra Bitcoin'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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Cathedra Bitcoin ROC % Chart

Cathedra Bitcoin Annual Data
Trend
ROC %

Cathedra Bitcoin Quarterly Data
Sep23 Sep24
ROC % - -5.84

Cathedra Bitcoin ROC % Calculation

Cathedra Bitcoin's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Cathedra Bitcoin'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: Sep. 2023 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-2.284 * ( 1 - -9.57% )/( (0 + 42.843)/ 1 )
=-2.5025788/42.843
=-5.84 %

where

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.


Cathedra Bitcoin  (TSXV:CBIT) 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, Cathedra Bitcoin's WACC % is 0.00%. Cathedra Bitcoin's ROC % is -1.46% (calculated using TTM income statement data). Cathedra Bitcoin 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.


Cathedra Bitcoin ROC % Related Terms

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Cathedra Bitcoin Business Description

Traded in Other Exchanges
Address
320 - 638 Broughton Street, Vancouver, BC, CAN, V6G 3K3
Cathedra Bitcoin Inc develops and operates high-density compute infrastructure across North America. The company hosts bitcoin mining clients across its portfolio of three data centers (30 MW total) in Tennessee and Kentucky. Additionally, Cathedra is a partner in a joint venture that is developing a 60-MW data center in North Dakota which will also host Bitcoin miners. It also operates a fleet of proprietary bitcoin mining machines at its own and third-party data centers, producing approximately 400 PH/s of hash rate. The company is focused on expanding its portfolio of data center infrastructure for high-density computing applications including bitcoin mining and artificial intelligence.

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