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AMPD Ventures (AMPD Ventures) ROIC % : -148.61% (As of Feb. 2023)


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What is AMPD Ventures ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. AMPD Ventures's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2023 was -148.61%.

As of today (2024-06-23), AMPD Ventures's WACC % is 0.00%. AMPD Ventures's ROIC % is 0.00% (calculated using TTM income statement data). AMPD Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.


AMPD Ventures ROIC % Historical Data

The historical data trend for AMPD Ventures's ROIC % 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.

AMPD Ventures ROIC % Chart

AMPD Ventures Annual Data
Trend May18 May19 May20 May21
ROIC %
-227.36 -141.13 -564.55 -164.53

AMPD Ventures Quarterly Data
May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 Aug22 Nov22 Feb23
ROIC % 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 Premium Member Only Premium Member Only -170.27 -200.78 -183.62 -160.72 -148.61

Competitive Comparison of AMPD Ventures's ROIC %

For the Software - Infrastructure subindustry, AMPD Ventures's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AMPD Ventures's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, AMPD Ventures's ROIC % distribution charts can be found below:

* The bar in red indicates where AMPD Ventures's ROIC % falls into.



AMPD Ventures ROIC % Calculation

AMPD Ventures's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2021 is calculated as:

ROIC % (A: May. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2020 ) + Invested Capital (A: May. 2021 ))/ count )
=-2.5 * ( 1 - 0% )/( (1.703 + 1.336)/ 2 )
=-2.5/1.5195
=-164.53 %

where

AMPD Ventures's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2023 is calculated as:

ROIC % (Q: Feb. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2022 ) + Invested Capital (Q: Feb. 2023 ))/ count )
=-6.848 * ( 1 - 0% )/( (4.626 + 4.59)/ 2 )
=-6.848/4.608
=-148.61 %

where

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


AMPD Ventures  (OTCPK:AMPDF) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, AMPD Ventures's WACC % is 0.00%. AMPD Ventures's ROIC % is 0.00% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


AMPD Ventures ROIC % Related Terms

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AMPD Ventures (AMPD Ventures) Business Description

Traded in Other Exchanges
N/A
Address
577 Great Northern Way, Suite 210, Vancouver, BC, CAN, V5T 1E1
AMPD Ventures Inc is specialized in providing high-performance cloud and compute solutions for low-latency applications including video games and eSports, digital animation and visual effects, and big data collection, analysis, and visualization. Geographically, it derives a majority of revenue from Canada.