Nexity Global (WAR:NXG) ROIC % : -87.26% (As of Sep. 2024)

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What is Nexity Global 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 %. Nexity Global's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -87.26%.

As of today (2024-12-13), Nexity Global's WACC % is 12.16%. Nexity Global's ROIC % is -63.11% (calculated using TTM income statement data). Nexity Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nexity Global ROIC % Historical Data

The historical data trend for Nexity Global'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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Nexity Global ROIC % Chart

Nexity Global Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROIC %

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-49.76

-23.35

-32.96

-53.96

-114.80

Nexity Global Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23	Jun23	Sep23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															125.30	-67.95	-25.55	-171.59	-87.26

Competitive Comparison of Nexity Global's ROIC %

For the Software - Application subindustry, Nexity Global'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.

Nexity Global's ROIC % Distribution in the Software Industry

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

* The bar in red indicates where Nexity Global's ROIC % falls into.

Nexity Global ROIC % Calculation

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

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-4.754 * ( 1 - -0.03% )	/	( (5.244	+	3.041)	/ 2 )
=	-4.7554262	/	4.1425
=	-114.80 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	6.144	-	0.358	-	( 0.542	-	max(0, 0.811	-	4.495	+	0.542	))
=	5.244

	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	))
=	2.809	-	1.106	-	( 0.139	-	max(0, 3.971	-	2.633	+	0.139	))
=	3.041

Nexity Global's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.236 * ( 1 - -2.6% )	/	( (0.208	+	0.347)	/ 2 )
=	-0.242136	/	0.2775
=	-87.26 %

where

	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	))
=	0.542	-	0.33	-	( 0.004	-	max(0, 0.491	-	0.537	+	0.004	))
=	0.208

	Invested Capital		(Q: Sep. 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	))
=	0.55	-	0.219	-	( 0	-	max(0, 0.562	-	0.546	+	0	))
=	0.347

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Nexity Global (WAR:NXG) 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, Nexity Global's WACC % is 12.16%. Nexity Global's ROIC % is -63.11% (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.

Nexity Global ROIC % Related Terms

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Nexity Global Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Ul. Grunwaldzka 28, Nowy Sacz, POL, 33-300

Website

http://www.nexity.io

Nexity Global SA is a provider of cloud based solutions for full electric vehicle ecosystem. The company provides infrastructure management and electric vehicle charging services along the entire value chain for electromobility. NEXITY NETWORK is a platform that allows its users free access to any electric vehicle charging point. It provides tools that allow users of electric vehicles to charge anywhere without restrictions and without any barriers. On the other hand, it offers a complete, universal and flexible solution in the SaaS model for conducting business in electromobility to anyone who only has a charging station, thus enabling the management of both a single station and a professional network of electric car charging stations, while ensuring easy access to the user.