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Geosolar Technologies (Geosolar Technologies) ROIC % : -39.98% (As of Mar. 2024)


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What is Geosolar Technologies 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 %. Geosolar Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -39.98%.

As of today (2024-06-05), Geosolar Technologies's WACC % is 10.35%. Geosolar Technologies's ROIC % is -41.89% (calculated using TTM income statement data). Geosolar Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Geosolar Technologies ROIC % Historical Data

The historical data trend for Geosolar Technologies'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.

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Geosolar Technologies ROIC % Chart

Geosolar Technologies Annual Data
Trend Dec22 Dec23
ROIC %
-163.47 -91.34

Geosolar Technologies Quarterly Data
Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
ROIC % Get a 7-Day Free Trial -316.98 -149.78 -87.80 -62.01 -39.98

Competitive Comparison of Geosolar Technologies's ROIC %

For the Solar subindustry, Geosolar Technologies'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.


Geosolar Technologies's ROIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Geosolar Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where Geosolar Technologies's ROIC % falls into.



Geosolar Technologies ROIC % Calculation

Geosolar Technologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-2.637 * ( 1 - 0% )/( (2.067 + 3.707)/ 2 )
=-2.637/2.887
=-91.34 %

where

Geosolar Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-1.504 * ( 1 - 0% )/( (3.707 + 3.816)/ 2 )
=-1.504/3.7615
=-39.98 %

where

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


Geosolar Technologies  (OTCPK:GSLR) 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, Geosolar Technologies's WACC % is 10.35%. Geosolar Technologies's ROIC % is -41.89% (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.


Geosolar Technologies ROIC % Related Terms

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Geosolar Technologies (Geosolar Technologies) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
1400 16th Street, Suite 400, Denver, CO, USA, 80202
Geosolar Technologies Inc plans to install natural energy systems, referred to as the GeoSolar Plus System in newly built and existing residences as well as green new apartments and commercial buildings. The GSP System is based on combining solar power, geothermal ground-sourced energy and other clean energy technologies into one fully integrated system. The GSP system is designed to significantly reduce energy consumption and associated carbon emissions and improve the atmospheric and indoor air quality in residences.

Geosolar Technologies (Geosolar Technologies) Headlines