Eco Innovation Group (Eco Innovation Group) ROC % : -45.18% (As of Sep. 2022)

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What is Eco Innovation Group ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Eco Innovation Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was -45.18%.

As of today (2024-06-01), Eco Innovation Group's WACC % is 0.00%. Eco Innovation Group's ROC % is 0.00% (calculated using TTM income statement data). Eco Innovation Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Eco Innovation Group ROC % Historical Data

The historical data trend for Eco Innovation Group's ROC % 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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Eco Innovation Group ROC % Chart

Eco Innovation Group Annual Data

Trend

Dec20

Dec21

ROC %

-273.89

-66.59

Eco Innovation Group Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %	Get a 7-Day Free Trial					-59.18	-24.45	-22.26	-30.47	-45.18

Eco Innovation Group ROC % Calculation

Eco Innovation Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-1.692 * ( 1 - 0% )	/	( (1.402	+	3.68)	/ 2 )
=	-1.692	/	2.541
=	-66.59 %

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	))
=	1.058	-	0.224	-	( 0	-	max(0, 0.568	-	0	+	0	))
=	1.402

	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	))
=	0.373	-	1.203	-	( 0.029	-	max(0, 4.654	-	0.144	+	0.029	))
=	3.68

Eco Innovation Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-0.984 * ( 1 - 0% )	/	( (2.742	+	1.614)	/ 2 )
=	-0.984	/	2.178
=	-45.18 %

where

	Invested Capital		(Q: Jun. 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	))
=	0.64	-	2.546	-	( 0.022	-	max(0, 5.119	-	0.471	+	0.022	))
=	2.742

	Invested Capital		(Q: Sep. 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	))
=	0.454	-	2.889	-	( 0.015	-	max(0, 4.34	-	0.291	+	0.015	))
=	1.614

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Eco Innovation Group (OTCPK:ECOX) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Eco Innovation Group's WACC % is 0.00%. Eco Innovation Group's ROC % is 0.00% (calculated using TTM income statement data). Eco Innovation Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Eco Innovation Group ROC % Related Terms

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Eco Innovation Group (Eco Innovation Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Eco Innovation Group Inc (OTCPK:ECOX) » Definitions » ROC %

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Traded in Other Exchanges

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Address

16525 Sherman Way, Suite C-1, Van Nuys, CA, USA, 91406

Website

https://www.ecoig.com

Eco Innovation Group Inc is a socially responsible and sustainability-focused technology incubator devoted to the commercialization of select intellectual property that has the potential to achieve commercial success.