Haydale Graphene Industries (LSE:HAYD) ROIC % : -50.21% (As of Jun. 2024)

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What is Haydale Graphene Industries 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 %. Haydale Graphene Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -50.21%.

As of today (2024-12-14), Haydale Graphene Industries's WACC % is 18.87%. Haydale Graphene Industries's ROIC % is -46.75% (calculated using TTM income statement data). Haydale Graphene Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Haydale Graphene Industries ROIC % Historical Data

The historical data trend for Haydale Graphene Industries'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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Haydale Graphene Industries ROIC % Chart

Haydale Graphene Industries Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROIC %

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-33.97

-27.86

-36.69

-46.58

-46.52

Haydale Graphene Industries Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial															-38.02	-45.50	-46.39	-43.60	-50.21

Competitive Comparison of Haydale Graphene Industries's ROIC %

For the Specialty Chemicals subindustry, Haydale Graphene Industries'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.

Haydale Graphene Industries's ROIC % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Haydale Graphene Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Haydale Graphene Industries's ROIC % falls into.

Haydale Graphene Industries ROIC % Calculation

Haydale Graphene Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROIC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-4.697 * ( 1 - 3.79% )	/	( (10.65	+	8.778)	/ 2 )
=	-4.5189837	/	9.714
=	-46.52 %

where

	Invested Capital		(A: 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	))
=	12.887	-	0.859	-	( 1.378	-	max(0, 2.013	-	4.527	+	1.378	))
=	10.65

	Invested Capital		(A: Jun. 2024 )
=	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	))
=	11.307	-	0.812	-	( 1.717	-	max(0, 2.378	-	5.102	+	1.717	))
=	8.778

Haydale Graphene Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-4.736 * ( 1 - 2.75% )	/	( (9.567	+	8.778)	/ 2 )
=	-4.60576	/	9.1725
=	-50.21 %

where

	Invested Capital		(Q: Dec. 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	))
=	14.465	-	1.598	-	( 3.3	-	max(0, 2.149	-	6.796	+	3.3	))
=	9.567

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	11.307	-	0.812	-	( 1.717	-	max(0, 2.378	-	5.102	+	1.717	))
=	8.778

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Haydale Graphene Industries (LSE:HAYD) 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, Haydale Graphene Industries's WACC % is 18.87%. Haydale Graphene Industries's ROIC % is -46.75% (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.

Haydale Graphene Industries ROIC % Related Terms

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Haydale Graphene Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Haydale Graphene Industries PLC (LSE:HAYD) » Definitions » ROIC %

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HDGHF:USA 6HG:Germany

Address

Clos Fferws, Parc Hendre, Capel Hendre, Ammanford, Carmarthenshire, GBR, SA18 3BL

Website

http://www.haydale.com

Haydale Graphene Industries PLC is a UK based company engaged in the research and development, manufacturing, and sale of surface functionalized graphene products. Its geographical segments include UK and Europe; North America and Asia Pacific. The company derives a majority of its revenue from North America. The North America segment focuses on SiC and blank products for tooling. The company's products are used in Aerospace; Automotive; Electronics; Health; Energy Sector and other industries.

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