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SolidX AB (XSAT:SOLIDX) ROC % : -11.01% (As of Jul. 2024)


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What is SolidX AB 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 %. SolidX AB's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -11.01%.

As of today (2024-12-15), SolidX AB's WACC % is 7.24%. SolidX AB's ROC % is -9.17% (calculated using TTM income statement data). SolidX AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.


SolidX AB ROC % Historical Data

The historical data trend for SolidX AB'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.

SolidX AB ROC % Chart

SolidX AB Annual Data
Trend Apr20 Apr21 Apr22 Apr23
ROC %
9.03 26.36 25.57 21.40

SolidX AB Quarterly Data
Apr20 Jul20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -21.42 37.94 -93.23 0.49 -11.01

SolidX AB ROC % Calculation

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

ROC % (A: Apr. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2022 ) + Invested Capital (A: Apr. 2023 ))/ count )
=5.748 * ( 1 - 13.88% )/( (22.695 + 23.57)/ 2 )
=4.9501776/23.1325
=21.40 %

where

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

ROC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=-7.38 * ( 1 - -7.55% )/( (73.485 + 70.662)/ 2 )
=-7.93719/72.0735
=-11.01 %

where

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


SolidX AB  (XSAT:SOLIDX) 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, SolidX AB's WACC % is 7.24%. SolidX AB's ROC % is -9.17% (calculated using TTM income statement data). SolidX AB 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.


SolidX AB ROC % Related Terms

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SolidX AB Business Description

Traded in Other Exchanges
N/A
Address
Sturegatan 12 A, Eslov, SWE, 241 31
SolidX AB is an IT consulting company in Sweden.

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