Arway (XCNQ:ARWY) ROC % : -7,979.49% (As of Feb. 2024)

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What is Arway 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 %. Arway's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -7,979.49%.

As of today (2024-06-18), Arway's WACC % is 9.70%. Arway's ROC % is -178.81% (calculated using TTM income statement data). Arway earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Arway ROC % Historical Data

The historical data trend for Arway'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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Arway ROC % Chart

Arway Annual Data

Trend

Aug22

Aug23

ROC %

-32,150.00

Arway Quarterly Data
	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial			-124.40	-123.46	-193.14	-10,577.78	-7,979.49

Arway ROC % Calculation

Arway's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	-4.501 * ( 1 - 0% )	/	( (0	+	0.014)	/ 1 )
=	-4.501	/	0.014
=	-32,150.00 %

where

	Invested Capital		(A: Aug. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(A: Aug. 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	))
=	0.344	-	0.153	-	( 0.281	-	max(0, 0.162	-	0.339	+	0.281	))
=	0.014

Arway's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-1.556 * ( 1 - 0% )	/	( (0.013	+	0.026)	/ 2 )
=	-1.556	/	0.0195
=	-7,979.49 %

where

	Invested Capital		(Q: Nov. 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	))
=	0.153	-	0.123	-	( 0.079	-	max(0, 0.132	-	0.149	+	0.079	))
=	0.013

	Invested Capital		(Q: Feb. 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	))
=	0.16	-	0.189	-	( 0.029	-	max(0, 0.211	-	0.156	+	0.029	))
=	0.026

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

Arway (XCNQ:ARWY) 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, Arway's WACC % is 9.70%. Arway's ROC % is -178.81% (calculated using TTM income statement data). Arway 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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Arway (XCNQ:ARWY) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

ARWYF:USA E65:Germany

Address

Toronto Rpo Royal Bank Plaza, PO Box 64039, Toronto, ON, CAN, M5J 2T6

Website

https://www.arway.ai

Arway Corp is s an AI-powered augmented reality experience platform for indoor spaces. The platform allows users to easily create experiences for navigation, tours, information sharing, notifications, advertising, and gamification. It creates immersive AR experiences using its web-based studio and brings them to life through smartphones.

Executives

Evan Gappelberg

Director

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