AMPD Ventures (XCNQ:AMPD) ROC % : -148.57% (As of Feb. 2023)

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What is AMPD Ventures 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 %. AMPD Ventures's annualized return on capital (ROC %) for the quarter that ended in Feb. 2023 was -148.57%.

As of today (2024-05-16), AMPD Ventures's WACC % is 0.00%. AMPD Ventures's ROC % is 0.00% (calculated using TTM income statement data). AMPD Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AMPD Ventures ROC % Historical Data

The historical data trend for AMPD Ventures'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.

AMPD Ventures ROC % Chart

AMPD Ventures Annual Data

Trend

May18

May19

May20

May21

ROC %

-225.21

-142.19

-568.22

-151.55

AMPD Ventures Quarterly Data
	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	Aug22	Nov22	Feb23
ROC %	Get a 7-Day Free Trial														-169.99	-201.67	-184.88	-163.99	-148.57

AMPD Ventures ROC % Calculation

AMPD Ventures's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2021 is calculated as:

	ROC % (A: May. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2020 )	+	Invested Capital (A: May. 2021 ))	/ count )
=	-3.031 * ( 1 - 0% )	/	( (2.38	+	1.62)	/ 2 )
=	-3.031	/	2
=	-151.55 %

where

	Invested Capital		(A: May. 2020 )
=	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	))
=	2.771	-	0.394	-	( 0.939	-	max(0, 1.306	-	1.303	+	0.939	))
=	2.38

	Invested Capital		(A: May. 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	))
=	2.939	-	0.352	-	( 1.608	-	max(0, 1.053	-	2.02	+	1.608	))
=	1.62

AMPD Ventures's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2023 is calculated as:

	ROC % (Q: Feb. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2022 )	+	Invested Capital (Q: Feb. 2023 ))	/ count )
=	-9.212 * ( 1 - 0% )	/	( (6.225	+	6.176)	/ 2 )
=	-9.212	/	6.2005
=	-148.57 %

where

	Invested Capital		(Q: Nov. 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	))
=	6.573	-	1.336	-	( 0.837	-	max(0, 2.598	-	1.61	+	0.837	))
=	6.225

	Invested Capital		(Q: Feb. 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	))
=	5.597	-	1.703	-	( 0.125	-	max(0, 2.977	-	0.695	+	0.125	))
=	6.176

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

AMPD Ventures (XCNQ:AMPD) 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, AMPD Ventures's WACC % is 0.00%. AMPD Ventures's ROC % is 0.00% (calculated using TTM income statement data). AMPD Ventures 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.

AMPD Ventures ROC % Related Terms

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AMPD Ventures (XCNQ:AMPD) Business Description

Industry

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AMPDF:USA

Address

577 Great Northern Way, Suite 210, Vancouver, BC, CAN, V5T 1E1

Website

https://www.ampd.ventures

AMPD Ventures Inc is specialized in providing high-performance cloud and compute solutions for low-latency applications including video games and eSports, digital animation and visual effects, and big data collection, analysis, and visualization. Geographically, it derives a majority of revenue from Canada.

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