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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tailwind International Acquisition's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was -0.55%.
As of today (2025-03-14), Tailwind International Acquisition's WACC % is 9.90%. Tailwind International Acquisition's ROC % is -0.89% (calculated using TTM income statement data). Tailwind International Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Tailwind International Acquisition'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.
Tailwind International Acquisition Annual Data | |||||||
Trend | Dec20 | Dec21 | Dec22 | ||||
ROC % | - | -0.91 | -0.88 |
Tailwind International Acquisition Quarterly Data | ||||||||
Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | |
ROC % | Get a 7-Day Free Trial | -0.57 | -0.88 | -1.91 | -0.21 | -0.55 |
Tailwind International Acquisition'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 ) |
= | -3.07 * ( 1 - 0% ) | / | ( (345.034 | + | 349.743) | / 2 ) |
= | -3.07 | / | 347.3885 | |||
= | -0.88 % |
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 | )) |
= | 346.656 | - | 0.968 | - | ( 1.224 | - | max(0, 0.968 | - | 1.622 | + | 1.224 | )) |
= | 345.034 |
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 | )) |
= | 349.93 | - | 2.603 | - | ( 0.129 | - | max(0, 2.603 | - | 0.187 | + | 0.129 | )) |
= | 349.743 |
Tailwind International Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:
ROC % (Q: Dec. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2022 ) | + | Invested Capital (Q: Dec. 2022 )) | / count ) |
= | -1.928 * ( 1 - 0% ) | / | ( (346.928 | + | 349.743) | / 2 ) |
= | -1.928 | / | 348.3355 | |||
= | -0.55 % |
where
Invested Capital | (Q: Sep. 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 | )) |
= | 347.262 | - | 2.268 | - | ( 0.168 | - | max(0, 2.268 | - | 0.334 | + | 0.168 | )) |
= | 346.928 |
Invested Capital | (Q: 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 | )) |
= | 349.93 | - | 2.603 | - | ( 0.129 | - | max(0, 2.603 | - | 0.187 | + | 0.129 | )) |
= | 349.743 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2022) 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.
Tailwind International Acquisition (OTCPK:TWNUF) 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, Tailwind International Acquisition's WACC % is 9.90%. Tailwind International Acquisition's ROC % is -0.89% (calculated using TTM income statement data). Tailwind International Acquisition 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.
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Matthew Eby | director | TENGRAM CAPITAL PARTNERS, 15 RIVERSIDE AVENUE, WESTPORT CT 06880 |
Pierre Denis | director, officer: Chief Executive Officer | 350 FIFTH AVENUE, NEW YORK NY 10118 |
Philip Krim | 10 percent owner | C/O CASPER SLEEP INC., 175 GREENWICH ST., THREE WORLD TRADE CENTER, FLOOR 39, NEW YORK NY 10007 |
Alan Sheriff | director | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Moujan Kazerani | director | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Tommy Stadlen | director, 10 percent owner | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Eis Constantin | director, officer: Chief Financial Officer | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Nathalie Gaveau | director, officer: President | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Spencer Crawley | director | C/O TAILWIND ACQUISITION, 1545 COURTNEY AVENUE, LOS ANGELES CA 90046 |
Tailwind International Sponsor Llc | 10 percent owner | 150 GREENWICH STREET, 29TH FLOOR, NEW YORK NY 10006 |
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