GreenPower Motor Co (TSXV:GPV) ROC % : -42.97% (As of Sep. 2024)

View and export this data going back to 2011. Start your Free Trial

What is GreenPower Motor Co 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 %. GreenPower Motor Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -42.97%.

As of today (2024-12-15), GreenPower Motor Co's WACC % is 19.09%. GreenPower Motor Co's ROC % is -45.90% (calculated using TTM income statement data). GreenPower Motor Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GreenPower Motor Co ROC % Historical Data

The historical data trend for GreenPower Motor Co'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.

* Premium members only.

GreenPower Motor Co ROC % Chart

GreenPower Motor Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

-28.38

-32.93

-40.50

-26.82

-34.54

GreenPower Motor Co 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															-32.93	-33.30	-60.45	-48.95	-42.97

GreenPower Motor Co ROC % Calculation

GreenPower Motor Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-22.743 * ( 1 - 0% )	/	( (76.09	+	55.599)	/ 2 )
=	-22.743	/	65.8445
=	-34.54 %

where

	Invested Capital		(A: Mar. 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	))
=	86.921	-	10.01	-	( 0.821	-	max(0, 36.26	-	74.102	+	0.821	))
=	76.09

	Invested Capital		(A: Mar. 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	))
=	61.187	-	4.03	-	( 1.558	-	max(0, 28.821	-	49.884	+	1.558	))
=	55.599

GreenPower Motor Co'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 )
=	-22.352 * ( 1 - 0% )	/	( (54.262	+	49.763)	/ 2 )
=	-22.352	/	52.0125
=	-42.97 %

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	))
=	59.569	-	4.583	-	( 0.724	-	max(0, 31.269	-	50.345	+	0.724	))
=	54.262

	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	))
=	53.336	-	3.415	-	( 0.158	-	max(0, 31.321	-	44.99	+	0.158	))
=	49.763

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

GreenPower Motor Co (TSXV:GPV) 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, GreenPower Motor Co's WACC % is 19.09%. GreenPower Motor Co's ROC % is -45.90% (calculated using TTM income statement data). GreenPower Motor Co 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.

GreenPower Motor Co ROC % Related Terms

Thank you for viewing the detailed overview of GreenPower Motor Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

GreenPower Motor Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » GreenPower Motor Co Inc (TSXV:GPV) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GP:USA GRT1:Germany

Address

209 Carrall Street, Suite 240, Vancouver, BC, CAN, V6B 2J2

Website

https://www.greenpowermotor.com

GreenPower Motor Co Inc is the manufacturer and distributor of all-electric charter, school, and city buses. The company offers electric-powered transit buses deploying electric drive and battery technologies with a lightweight chassis and low-floor body. Its product line includes all-electric transit buses, all-electric school buses, and shuttle buses. The company's buses depend on clean sheet design and utilize a custom battery management system and a proprietary flex power system for the drive motors. Geographically, the company generates a majority of its revenue from the United States of America and the rest from Canada.

Executives

Malcolm Clay	Director
Michael Sieffert	Senior Officer
Fraser Atkinson	10% Security Holder, Director, Senior Officer
Brendan Riley	Senior Officer
Phillip Oldridge	Director, Director or Senior Officer of 10% Security Holder, Senior Officer

GreenPower Motor Co Headlines

No Headlines