Liberty Defense Holdings (TSXV:SCAN) ROC % : -116.45% (As of Sep. 2024)

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What is Liberty Defense 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 %. Liberty Defense Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -116.45%.

As of today (2025-03-28), Liberty Defense Holdings's WACC % is 0.57%. Liberty Defense Holdings's ROC % is -143.19% (calculated using TTM income statement data). Liberty Defense Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Liberty Defense Holdings ROC % Historical Data

The historical data trend for Liberty Defense 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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Liberty Defense Holdings ROC % Chart

Liberty Defense Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-2,526.66

-64.83

-271.81

-251.95

-177.68

Liberty Defense Holdings 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															-113.72	-206.58	-120.39	-142.13	-116.45

Liberty Defense Holdings ROC % Calculation

Liberty Defense Holdings'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 )
=	-12.218 * ( 1 - 0% )	/	( (6.646	+	7.107)	/ 2 )
=	-12.218	/	6.8765
=	-177.68 %

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	))
=	8.469	-	2.005	-	( 0.92	-	max(0, 2.213	-	2.031	+	0.92	))
=	6.646

	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	))
=	7.824	-	6.668	-	( 0.001	-	max(0, 7.992	-	2.041	+	0.001	))
=	7.107

Liberty Defense Holdings'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 )
=	-11.616 * ( 1 - 0% )	/	( (10.27	+	9.681)	/ 2 )
=	-11.616	/	9.9755
=	-116.45 %

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	))
=	7.36	-	4.54	-	( 0.24	-	max(0, 9.759	-	2.309	+	0.24	))
=	10.27

	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	))
=	5.929	-	6.172	-	( 0.53	-	max(0, 11.296	-	1.372	+	0.53	))
=	9.681

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

Liberty Defense Holdings (TSXV:SCAN) 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, Liberty Defense Holdings's WACC % is 0.57%. Liberty Defense Holdings's ROC % is -143.19% (calculated using TTM income statement data). Liberty Defense 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.

Liberty Defense Holdings ROC % Related Terms

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Liberty Defense Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Liberty Defense Holdings Ltd (TSXV:SCAN) » Definitions » ROC %

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LDDFF:USA E30:Germany

Address

789 999 West Hastings Street, Vancouver, BC, CAN, V6C 2W2

Website

https://www.libertydefense.com

Liberty Defense Holdings Ltd provides multi-technology security solutions for concealed weapons detection in high volume foot traffic areas and locations requiring enhanced security such as airports, stadiums, schools, and more. Its HEXWAVE product, provides discrete, modular, and scalable protection to provide layered, stand-off detection capability of metallic and non-metallic weapons. The company has also licensed the millimeter wave-based, High-Definition Advanced Imaging Technology (HD-AIT) body scanner and shoe scanner technologies as part of its technology portfolio. It operates in a single segment being the research and development of new technology for the security industry.

Executives

William Frain	Director, Senior Officer
Daryl Rebeck	Senior Officer