Sol Strategies (XCNQ:HODL) ROC % : 22.57% (As of Dec. 2024)

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What is Sol Strategies 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 %. Sol Strategies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 22.57%.

As of today (2025-03-27), Sol Strategies's WACC % is 17.16%. Sol Strategies's ROC % is 30.17% (calculated using TTM income statement data). Sol Strategies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Sol Strategies ROC % Historical Data

The historical data trend for Sol Strategies'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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Sol Strategies ROC % Chart

Sol Strategies Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROC %

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-3.35

-4.86

-9.87

-65.79

30.42

Sol Strategies Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															57.98	-2.11	-30.97	163.52	22.57

Sol Strategies ROC % Calculation

Sol Strategies's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

	ROC % (A: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2023 )	+	Invested Capital (A: Sep. 2024 ))	/ count )
=	7.938 * ( 1 - 19.34% )	/	( (15.01	+	27.089)	/ 2 )
=	6.4027908	/	21.0495
=	30.42 %

where

	Invested Capital		(A: 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	))
=	17.054	-	0.226	-	( 1.927	-	max(0, 0.226	-	2.044	+	1.927	))
=	15.01

	Invested Capital		(A: 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	))
=	28.904	-	1.781	-	( 1.808	-	max(0, 1.781	-	1.815	+	1.808	))
=	27.089

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

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	16.824 * ( 1 - 26.5% )	/	( (27.089	+	82.472)	/ 2 )
=	12.36564	/	54.7805
=	22.57 %

where

	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	))
=	28.904	-	1.781	-	( 1.808	-	max(0, 1.781	-	1.815	+	1.808	))
=	27.089

	Invested Capital		(Q: Dec. 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	))
=	74.632	-	0.562	-	( 1.279	-	max(0, 9.74	-	1.338	+	1.279	))
=	82.472

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

Sol Strategies (XCNQ:HODL) 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, Sol Strategies's WACC % is 17.16%. Sol Strategies's ROC % is 30.17% (calculated using TTM income statement data). Sol Strategies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Sol Strategies ROC % Related Terms

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Sol Strategies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Sol Strategies Inc (XCNQ:HODL) » Definitions » ROC %

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CYFRF:USA 1X00:Germany

Address

217 Queen Street West, Suite 401, Toronto, ON, CAN, M5V 0R2

Website

https://www.solstrategies.io

Sol Strategies Inc is engaged in investing in blockchain technologies and crypto currencies. Company executes its Investment Objective through three lines of effort: Treasury management: Maintaining a core portfolio of cryptocurrencies for long-term growth, enhanced with risk management strategies to minimize volatility, and generating yield through lending, staking, and liquidity provisioning; Private equity focused on early stage companies in the DeFi and blockchain sectors; and Active investments to generate yield through strategic activities, including Bitcoin mining and stalking and validating Solana.

Executives

Jon Matonis	Director
Antanas (tony) Guoga	Director, Senior Officer
Leah Katherine Wald	Director, Senior Officer
Ungad Chadda	Director
Douglas Andrew Harris	Senior Officer
Mohammed Adham	Director, Senior Officer
Rubsun Ho	Director
Marc Charles Henderson	Director
Blaise F. Yerly	Director
Dennis George Gibson	Senior Officer
Dominic Frisby	Director
Hft Strategies Inc	10% Security Holder