12 Retech (12 Retech) ROC % : -16.71% (As of Dec. 2021)

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What is 12 Retech 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 %. 12 Retech's annualized return on capital (ROC %) for the quarter that ended in Dec. 2021 was -16.71%.

As of today (2024-06-02), 12 Retech's WACC % is 0.00%. 12 Retech's ROC % is 0.00% (calculated using TTM income statement data). 12 Retech earns returns that do not match up to its cost of capital. It will destroy value as it grows.

12 Retech ROC % Historical Data

The historical data trend for 12 Retech'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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12 Retech ROC % Chart

12 Retech Annual Data

Trend

Nov14

Nov15

Nov16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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-628.18

-122.20

-37.81

-13.02

-9.94

12 Retech Quarterly Data
	Feb17	May17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
ROC %	Get a 7-Day Free Trial															-14.13	-8.16	-15.73	-15.69	-16.71

12 Retech ROC % Calculation

12 Retech'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 )
=	-1.968 * ( 1 - 0% )	/	( (28.506	+	11.104)	/ 2 )
=	-1.968	/	19.805
=	-9.94 %

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	))
=	0.587	-	3.571	-	( 0.012	-	max(0, 31.695	-	0.205	+	0.012	))
=	28.506

	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	))
=	0.864	-	4.554	-	( 0.013	-	max(0, 14.936	-	0.142	+	0.013	))
=	11.104

12 Retech's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2021 is calculated as:

	ROC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	-2.092 * ( 1 - 0% )	/	( (13.932	+	11.104)	/ 2 )
=	-2.092	/	12.518
=	-16.71 %

where

	Invested Capital		(Q: Sep. 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	))
=	0.677	-	4.107	-	( 0.095	-	max(0, 17.664	-	0.302	+	0.095	))
=	13.932

	Invested Capital		(Q: 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	))
=	0.864	-	4.554	-	( 0.013	-	max(0, 14.936	-	0.142	+	0.013	))
=	11.104

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data.

12 Retech (OTCPK:RETC) 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, 12 Retech's WACC % is 0.00%. 12 Retech's ROC % is 0.00% (calculated using TTM income statement data). 12 Retech 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.

12 Retech ROC % Related Terms

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12 Retech (12 Retech) Business Description

Industry

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Address

2828 N. Central Avenue, Suite 831, Phoenix, AZ, USA, 85004

Website

https://www.12reTech.com

12 Retech Corp mainly engages in the creation of mobile software applications. The company, through its subsidiaries, develops, improves, acquires, and licenses technologies designed to merge between real brick and mortar stores with online retailing of transacting commerce. It develops an omnichannel solution name 12 Technology Suite, through which retailers can choose the entire suite as per their need and combines real-world shopping with online media. The company's products which are based on its 12 technology suite include 12 Mirror, 12 Kiosk, 12 in-store apps, 12 Mobile apps, and 12 ERP.