SolarMax Technology (SolarMax Technology) ROC % : -142.76% (As of Mar. 2024)

View and export this data going back to 2024. Start your Free Trial

What is SolarMax 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 %. SolarMax Technology's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -142.76%.

As of today (2024-06-09), SolarMax Technology's WACC % is 9.51%. SolarMax Technology's ROC % is -30.40% (calculated using TTM income statement data). SolarMax Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SolarMax Technology ROC % Historical Data

The historical data trend for SolarMax 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.

SolarMax Technology ROC % Chart

SolarMax Technology Annual Data

Trend

Dec16

Dec17

Dec18

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-17.64

2.14

-8.55

-12.96

0.95

SolarMax Technology Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															4.33	-11.55	4.16	-3.72	-142.76

SolarMax Technology ROC % Calculation

SolarMax 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 )
=	0.484 * ( 1 - -17.25% )	/	( (64.55	+	55.041)	/ 2 )
=	0.56749	/	59.7955
=	0.95 %

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	))
=	61.478	-	14.355	-	( 3.822	-	max(0, 46.513	-	29.086	+	3.822	))
=	64.55

	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	))
=	48.655	-	17.093	-	( 2.539	-	max(0, 43.401	-	19.922	+	2.539	))
=	55.041

SolarMax 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 )
=	-75.524 * ( 1 - -0.03% )	/	( (55.041	+	50.799)	/ 2 )
=	-75.5466572	/	52.92
=	-142.76 %

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	))
=	48.655	-	17.093	-	( 2.539	-	max(0, 43.401	-	19.922	+	2.539	))
=	55.041

	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	))
=	54.692	-	13.02	-	( 11.93	-	max(0, 36.393	-	27.266	+	11.93	))
=	50.799

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

SolarMax Technology (NAS:SMXT) 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, SolarMax Technology's WACC % is 9.51%. SolarMax Technology's ROC % is -30.40% (calculated using TTM income statement data). SolarMax 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.

SolarMax Technology ROC % Related Terms

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

SolarMax Technology (SolarMax Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » SolarMax Technology Inc (NAS:SMXT) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

6W1:Germany

Address

3080 12th Street, Riverside, CA, USA, 92507

Website

http://www.solarmaxtech.com

SolarMax Technology Inc is an integrated solar and renewable energy company. It operates in two segments namely the United States and China. The United States business includes the sale and installation of photovoltaic and battery backup systems. China operations consist of operating and maintaining solar farm projects and identifying and procuring solar farm projects for resale to third parties. Some of its products are LG Solar Panels, QCELL Solar Panels, Panasonic Solar Panels, and others. The company generates a majority of its revenue from the Solar energy systems.

SolarMax Technology (SolarMax Technology) Headlines

From GuruFocus

SolarMax Technology, Inc. Announces Pricing of Initial Public Offering and listing on Nasdaq

By PRNewswire • 02-27-2024