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XTI Aerospace (XTI Aerospace) ROC % : 0.00% (As of Dec. 2023)


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What is XTI Aerospace 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 %. XTI Aerospace's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-05-27), XTI Aerospace's WACC % is 27.23%. XTI Aerospace's ROC % is -43.26% (calculated using TTM income statement data). XTI Aerospace earns returns that do not match up to its cost of capital. It will destroy value as it grows.


XTI Aerospace ROC % Historical Data

The historical data trend for XTI Aerospace'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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XTI Aerospace ROC % Chart

XTI Aerospace Annual Data
Trend Dec21 Dec22 Dec23
ROC %
-199.16 -59.68 -59.38

XTI Aerospace Semi-Annual Data
Dec21 Dec22 Dec23
ROC % -199.16 -28.76 -

XTI Aerospace ROC % Calculation

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

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-19.7 * ( 1 - -0.07% )/( (49.927 + 16.471)/ 2 )
=-19.71379/33.199
=-59.38 %

where

XTI Aerospace's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=0 * ( 1 - 0% )/( (49.927 + 16.471)/ 2 )
=0/33.199
=0.00 %

where

Note: The Operating Income data used here is one times the annual (Dec. 2023) 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.


XTI Aerospace  (NAS:XTIA) 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, XTI Aerospace's WACC % is 27.23%. XTI Aerospace's ROC % is -43.26% (calculated using TTM income statement data). XTI Aerospace 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.


XTI Aerospace ROC % Related Terms

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XTI Aerospace (XTI Aerospace) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
7625 South Peoria Street, Suite D11, Englewood, CO, USA, 80112
XTI Aerospace Inc is a development-stage aircraft manufacturer. XTI is developing a vertical takeoff and landing (VTOL) aircraft, the TriFan 600, which is a design-stage six-passenger aircraft that it anticipates will provide point-to-point air travel over distances of up to 700 miles while significantly reducing carbon emissions per mile compared to today's gasoline-powered jet aircraft and helicopters. The TriFan 600 is expected to have a wide usage ranging from private and commercial aviation services for businesses and high-net-worth individuals to emergency medical services (EMS).

XTI Aerospace (XTI Aerospace) Headlines