PlasCred Circular Innovations (PlasCred Circular Innovations) ROC % : -62.61% (As of Jun. 2023)

View and export this data going back to 2023. Start your Free Trial

What is PlasCred Circular Innovations 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 %. PlasCred Circular Innovations's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -62.61%.

As of today (2024-06-09), PlasCred Circular Innovations's WACC % is 0.00%. PlasCred Circular Innovations's ROC % is -32.95% (calculated using TTM income statement data). PlasCred Circular Innovations earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PlasCred Circular Innovations ROC % Historical Data

The historical data trend for PlasCred Circular Innovations'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.

* Premium members only.

PlasCred Circular Innovations ROC % Chart

PlasCred Circular Innovations Annual Data

Trend

Dec22

Dec23

ROC %

-296.53

PlasCred Circular Innovations Quarterly Data
	Jun22	Mar23	Jun23	Dec23
ROC %	-	-45.20	-62.61	-

PlasCred Circular Innovations ROC % Calculation

PlasCred Circular Innovations's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-2.267 * ( 1 - 0% )	/	( (0.857	+	0.672)	/ 2 )
=	-2.267	/	0.7645
=	-296.53 %

where

	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	))
=	0.361	-	0.205	-	( 0.088	-	max(0, 0.817	-	0.116	+	0.088	))
=	0.857

	Invested Capital		(A: 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	))
=	1.571	-	0.983	-	( 0.402	-	max(0, 0.985	-	0.901	+	0.402	))
=	0.672

PlasCred Circular Innovations's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-1.188 * ( 1 - 0% )	/	( (1.717	+	2.078)	/ 2 )
=	-1.188	/	1.8975
=	-62.61 %

where

	Invested Capital		(Q: Mar. 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	))
=	0.786	-	0.091	-	( 0.384	-	max(0, 1.447	-	0.425	+	0.384	))
=	1.717

	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	))
=	0.802	-	0.361	-	( 0.099	-	max(0, 1.794	-	0.157	+	0.099	))
=	2.078

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

PlasCred Circular Innovations (OTCPK:MGPRF) 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, PlasCred Circular Innovations's WACC % is 0.00%. PlasCred Circular Innovations's ROC % is -32.95% (calculated using TTM income statement data). PlasCred Circular Innovations 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.

PlasCred Circular Innovations ROC % Related Terms

Thank you for viewing the detailed overview of PlasCred Circular Innovations's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

PlasCred Circular Innovations (PlasCred Circular Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » PlasCred Circular Innovations Inc (OTCPK:MGPRF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

XV2:Germany PLAS:Canada

Address

810 - 789 West Pender Street, Vancouver, BC, CAN, V6C 1H2

Website

https://www.plascred.com

PlasCred Circular Innovations Inc is a green technology company based in Alberta, whose patent-pending and proprietary process enables true plastic waste removal in a scalable, systematic and profitable way. The PlasCred process hopes to deliver a commercially viable plastic recycling process, providing immediate economic benefit for industry, communities and government organizations for handling waste plastic.

PlasCred Circular Innovations (PlasCred Circular Innovations) Headlines

No Headlines