Sagaliam Acquisition (Sagaliam Acquisition) ROC % : -0.67% (As of Sep. 2023)

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What is Sagaliam Acquisition 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 %. Sagaliam Acquisition's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -0.67%.

As of today (2024-05-24), Sagaliam Acquisition's WACC % is 10.42%. Sagaliam Acquisition's ROC % is -4.83% (calculated using TTM income statement data). Sagaliam Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sagaliam Acquisition ROC % Historical Data

The historical data trend for Sagaliam Acquisition'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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Sagaliam Acquisition ROC % Chart

Sagaliam Acquisition Annual Data

Trend

Dec21

Dec22

ROC %

-7.76

Sagaliam Acquisition Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial						-1.07	-25.77	-23.78	-27.47	-0.67

Sagaliam Acquisition ROC % Calculation

Sagaliam Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-4.92 * ( 1 - 0% )	/	( (116.258	+	10.564)	/ 2 )
=	-4.92	/	63.411
=	-7.76 %

where

	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	))
=	117.221	-	0.226	-	( 0.762	-	max(0, 0.226	-	0.963	+	0.762	))
=	116.258

	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	))
=	10.045	-	3.335	-	( 0.003	-	max(0, 4.056	-	0.202	+	0.003	))
=	10.564

Sagaliam Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-1.58 * ( 1 - 0% )	/	( (11.658	+	462.135)	/ 2 )
=	-1.58	/	236.8965
=	-0.67 %

where

	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	))
=	10.567	-	4.003	-	( 0	-	max(0, 5.293	-	0.199	+	0	))
=	11.658

	Invested Capital		(Q: Sep. 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	))
=	461.409	-	4.1	-	( 0.537	-	max(0, 5.562	-	0.736	+	0.537	))
=	462.135

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

Sagaliam Acquisition (NAS:SAGA) 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, Sagaliam Acquisition's WACC % is 10.42%. Sagaliam Acquisition's ROC % is -4.83% (calculated using TTM income statement data). Sagaliam Acquisition 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.

Sagaliam Acquisition ROC % Related Terms

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Sagaliam Acquisition (Sagaliam Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Sagaliam Acquisition Corp (NAS:SAGA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1800 Avenue of the Stars, Suite 1475, Los Angeles, CA, USA, 90067

Website

https://www.sagaliam.com

Sagaliam Acquisition Corp is a blank check company.

Executives

Gld Sponsor Member, Llc	10 percent owner	11420 SANTA MONICA BLVD, BOX 251961, LOS ANGELES CA 90025
Alan H Ginsburg	10 percent owner	161 PALMER AVNUE, WINTER PARK FL 32789
Barry Kostiner	director, officer: Chairman and CEO	C/O AMERI HOLDINGS, INC., 5000 RESEARCH COURT, SUITE 750, SUWANEE GA 30024
Sagaliam Sponsor Llc	10 percent owner	1835 W. OLYMPIC BLVD, SUITE 1150E, LOS ANGELES CA 90064
Thomas W. Neukranz	director, officer: Chief Financial Officer	1800 AVENUE OF THE STARS, SUITE 1475, LOS ANGELES CA 90067
George Caruolo	director	1800 AVENUE OF THE STARS, SUITE 1475, LOS ANGELES CA 90067
Virginia Gabriel Del	director	1800 AVENUE OF THE STARS, SUITE 1475, LOS ANGELES CA 90067
Glauco Lolli-ghetti	director	1800 AVENUE OF THE STARS, SUITE 1475, LOS ANGELES CA 90067
Jiayin Liu	officer: VP, Business Development	1800 AVENUE OF THE STARS, SUITE 1475, LOS ANGELES CA 90067