Pond Technologies Holdings (TSXV:POND) ROC % : -49.15% (As of Sep. 2023)

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What is Pond Technologies Holdings 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 %. Pond Technologies Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -49.15%.

As of today (2024-05-02), Pond Technologies Holdings's WACC % is 12.84%. Pond Technologies Holdings's ROC % is -56.45% (calculated using TTM income statement data). Pond Technologies Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pond Technologies Holdings ROC % Historical Data

The historical data trend for Pond Technologies Holdings'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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Pond Technologies Holdings ROC % Chart

Pond Technologies Holdings Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-61.95

-51.61

-33.27

-66.66

-68.71

Pond Technologies Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-45.67	-59.12	-44.17	-74.44	-49.15

Pond Technologies Holdings ROC % Calculation

Pond Technologies Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-3.868 * ( 1 - 0% )	/	( (4.279	+	6.98)	/ 2 )
=	-3.868	/	5.6295
=	-68.71 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	5.26	-	1.119	-	( 1.067	-	max(0, 2.378	-	2.24	+	1.067	))
=	4.279

	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	))
=	4.671	-	1.5	-	( 0.196	-	max(0, 5.022	-	1.213	+	0.196	))
=	6.98

Pond Technologies Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-3.048 * ( 1 - 0% )	/	( (5.988	+	6.416)	/ 2 )
=	-3.048	/	6.202
=	-49.15 %

where

	Invested Capital		(Q: Jun. 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	))
=	4.059	-	2.344	-	( 0.119	-	max(0, 5.817	-	1.544	+	0.119	))
=	5.988

	Invested Capital		(Q: Sep. 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	))
=	3.682	-	2.816	-	( 0.07	-	max(0, 6.263	-	0.713	+	0.07	))
=	6.416

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Pond Technologies Holdings (TSXV:POND) 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, Pond Technologies Holdings's WACC % is 12.84%. Pond Technologies Holdings's ROC % is -56.45% (calculated using TTM income statement data). Pond Technologies Holdings 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.

Pond Technologies Holdings ROC % Related Terms

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Pond Technologies Holdings (TSXV:POND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Pond Technologies Holdings Inc (TSXV:POND) » Definitions » ROC %

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PNDHF:USA 4O0:Germany

Address

250 Shields Court, Unit 8, Markham, ON, CAN, L3R 9W2

Website

https://www.pondtech.com

Pond Technologies Holdings Inc offers an algae-growing platform, which converts carbon dioxide (CO2) into algal-based commercial products. Its algae-growing platform converts the CO2 found in the untreated stack gas of industrial emitters into biofuels, animal feeds, and natural fertilizers. The Company has three reportable segments, one of which is the Nutraceutical Products segment, which includes production and consumer sales, third-party product operations, and distribution. The Technology Services segment includes royalties, microalgal biomass production, consulting, engineering services, construction of biomass production facilities, and corporate services.