Nexalin Technology (Nexalin Technology) ROC % : -1,030.22% (As of Mar. 2024)

View and export this data going back to 2022. Start your Free Trial

What is Nexalin Technology 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 %. Nexalin Technology's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -1,030.22%.

As of today (2024-06-10), Nexalin Technology's WACC % is 10.23%. Nexalin Technology's ROC % is -1103.31% (calculated using TTM income statement data). Nexalin Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nexalin Technology ROC % Historical Data

The historical data trend for Nexalin Technology'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.

Nexalin Technology ROC % Chart

Nexalin Technology Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-556.92

-805.76

-219.92

-972.84

Nexalin Technology Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial									-459.93	-588.59	-1,505.30	-1,178.95	-1,030.22

Nexalin Technology ROC % Calculation

Nexalin Technology'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 )
=	-5.696 * ( 1 - 0% )	/	( (0.758	+	0.413)	/ 2 )
=	-5.696	/	0.5855
=	-972.84 %

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	))
=	7.432	-	1.198	-	( 6.994	-	max(0, 1.949	-	7.425	+	6.994	))
=	0.758

	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	))
=	3.632	-	0.271	-	( 2.948	-	max(0, 0.425	-	3.43	+	2.948	))
=	0.413

Nexalin Technology's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-4.296 * ( 1 - 0% )	/	( (0.413	+	0.421)	/ 2 )
=	-4.296	/	0.417
=	-1,030.22 %

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	))
=	3.632	-	0.271	-	( 2.948	-	max(0, 0.425	-	3.43	+	2.948	))
=	0.413

	Invested Capital		(Q: Mar. 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	))
=	2.834	-	0.357	-	( 2.144	-	max(0, 0.507	-	2.563	+	2.144	))
=	0.421

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

Nexalin Technology (NAS:NXL) 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, Nexalin Technology's WACC % is 10.23%. Nexalin Technology's ROC % is -1103.31% (calculated using TTM income statement data). Nexalin Technology 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.

Nexalin Technology ROC % Related Terms

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

Nexalin Technology (Nexalin Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Nexalin Technology Inc (NAS:NXL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1776 Yorktown, Suite 550, Houston, TX, USA, 77056

Website

https://www.nexalin.com

Nexalin Technology Inc design and develop innovative neurostimulation products to uniquely and effectively help combat the ongoing global mental health epidemic. The company has developed an easy-to-administer medical device referred to as Generation 1 or Gen-1 that utilizes bioelectronic medical technology to treat anxiety and insomnia, without the need for drugs or psychotherapy.

Executives

Marilyn Elson	10 percent owner, officer: Ms. Elson serves as CFO	32 CAMLET COURT, ROSELAND NJ 07068
Rick Morad	director	6331 CHAGRIN RIVER ROAD, BENTLEYVILLE OH 44022
Mark White	director, officer: President/CEO	1776 YORKTOWN STREET, SUITE 550, HOUSTON TX 77056
David Owens	director, officer: Chief Medical Officer	4545 HARRIS TRAIL NW, ATLANTA GA 30327
Alan Kazden	director	3435 CONSUELO DRIVE, CALABASAS CA 91302
Leonard Osser	other: Spouse
Ben Hu	director	7021 EDGERTON ROAD, NORTH ROYALTON OH 44133