Advanced Bitcoin Technologies AG (HAM:ABT) ROIC % : -17.55% (As of Jun. 2023)

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What is Advanced Bitcoin Technologies AG 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 %. Advanced Bitcoin Technologies AG's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -17.55%.

As of today (2024-05-27), Advanced Bitcoin Technologies AG's WACC % is 585.85%. Advanced Bitcoin Technologies AG's ROIC % is -32.98% (calculated using TTM income statement data). Advanced Bitcoin Technologies AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Advanced Bitcoin Technologies AG ROIC % Historical Data

The historical data trend for Advanced Bitcoin Technologies AG'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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Advanced Bitcoin Technologies AG ROIC % Chart

Advanced Bitcoin Technologies AG Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

ROIC %

-76.02

-7.09

-31.04

Advanced Bitcoin Technologies AG Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %	Get a 7-Day Free Trial			-0.41	-11.25	-16.28	-46.24	-17.55

Competitive Comparison of Advanced Bitcoin Technologies AG's ROIC %

For the Software - Infrastructure subindustry, Advanced Bitcoin Technologies AG'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.

Advanced Bitcoin Technologies AG's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Advanced Bitcoin Technologies AG's ROIC % distribution charts can be found below:

* The bar in red indicates where Advanced Bitcoin Technologies AG's ROIC % falls into.

Advanced Bitcoin Technologies AG ROIC % Calculation

Advanced Bitcoin Technologies AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-3.697 * ( 1 - 22.43% )	/	( (11.224	+	7.252)	/ 2 )
=	-2.8677629	/	9.238
=	-31.04 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	15.819	-	4.548	-	( 0.047	-	max(0, 4.548	-	8.921	+	0.047	))
=	11.224

	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	))
=	11.783	-	4.516	-	( 0.015	-	max(0, 4.516	-	8.561	+	0.015	))
=	7.252

Advanced Bitcoin Technologies AG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-1.58 * ( 1 - 24.75% )	/	( (7.252	+	6.301)	/ 2 )
=	-1.18895	/	6.7765
=	-17.55 %

where

	Invested Capital		(Q: 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	))
=	11.783	-	4.516	-	( 0.015	-	max(0, 4.516	-	8.561	+	0.015	))
=	7.252

	Invested Capital		(Q: Jun. 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	))
=	10.801	-	4.486	-	( 0.014	-	max(0, 4.486	-	8.434	+	0.014	))
=	6.301

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Advanced Bitcoin Technologies AG (HAM:ABT) 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, Advanced Bitcoin Technologies AG's WACC % is 585.85%. Advanced Bitcoin Technologies AG's ROIC % is -32.98% (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.

Advanced Bitcoin Technologies AG ROIC % Related Terms

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Advanced Bitcoin Technologies AG (HAM:ABT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Advanced Bitcoin Technologies AG (HAM:ABT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Grüneburgweg 58 - 62, Frankfurt am Main, DEU, D - 60322

Website

https://www.abt-ag.com

Advanced Bitcoin Technologies AG is a Germany based company engaged in the business of cryptocurrencies which enables the users to handle their daily financial transactions.