Nuran Wireless (XCNQ:NUR) ROC % : -55.95% (As of Sep. 2023)

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What is Nuran Wireless 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 %. Nuran Wireless's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -55.95%.

As of today (2024-04-30), Nuran Wireless's WACC % is 16.49%. Nuran Wireless's ROC % is -40.36% (calculated using TTM income statement data). Nuran Wireless earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nuran Wireless ROC % Historical Data

The historical data trend for Nuran Wireless'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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Nuran Wireless ROC % Chart

Nuran Wireless Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Dec22

ROC %

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-27.41

-24.77

-29.03

-41.84

-64.42

Nuran Wireless Quarterly Data
	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															-72.14	-38.44	-54.92	-53.24	-55.95

Nuran Wireless ROC % Calculation

Nuran Wireless'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: Oct. 2020 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-8.396 * ( 1 - 0% )	/	( (11.237	+	14.83)	/ 2 )
=	-8.396	/	13.0335
=	-64.42 %

where

	Invested Capital		(A: Oct. 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	))
=	7.645	-	2.113	-	( 0.064	-	max(0, 7.59	-	1.885	+	0.064	))
=	11.237

	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	))
=	18.738	-	6.73	-	( 0.183	-	max(0, 14.145	-	11.323	+	0.183	))
=	14.83

Nuran Wireless's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-10.624 * ( 1 - 0% )	/	( (16.483	+	21.491)	/ 2 )
=	-10.624	/	18.987
=	-55.95 %

where

	Invested Capital		(Q: Mar. 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	))
=	19.049	-	8.01	-	( 0.029	-	max(0, 17.073	-	11.629	+	0.029	))
=	16.483

	Invested Capital		(Q: 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	))
=	19.668	-	8.592	-	( 0.159	-	max(0, 22.517	-	12.102	+	0.159	))
=	21.491

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

Nuran Wireless (XCNQ:NUR) 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, Nuran Wireless's WACC % is 16.49%. Nuran Wireless's ROC % is -40.36% (calculated using TTM income statement data). Nuran Wireless 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.

Nuran Wireless ROC % Related Terms

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Nuran Wireless (XCNQ:NUR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Nuran Wireless Inc (XCNQ:NUR) » Definitions » ROC %

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NRRWF:USA 1RNA:Germany

Address

2150 Cyrille-Duquet Street, Suite 100, Quebec, QC, CAN, G1N 2G3

Website

https://www.nuranwireless.com

Nuran Wireless Inc is engaged in the Network as a Service (NAAS) business. The group operates in the research, development, manufacturing, marketing and operation of digital electronic circuits and wireless telecommunication products and offers services in the mobile telephony industry. It also provides products and services that help mobile network operators profitably serve off-grid markets that are currently not served. It has two reportable segments NaaS and Direct sales. The majority of the revenue is derived from Africa followed by Canada and so on.

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