Aduro Clean Technologies (XCNQ:ACT) ROC % : -230.68% (As of Feb. 2024)

View and export this data going back to 2019. Start your Free Trial

What is Aduro Clean Technologies 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 %. Aduro Clean Technologies's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -230.68%.

As of today (2024-06-07), Aduro Clean Technologies's WACC % is 8.02%. Aduro Clean Technologies's ROC % is -238.26% (calculated using TTM income statement data). Aduro Clean Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aduro Clean Technologies ROC % Historical Data

The historical data trend for Aduro Clean Technologies'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.

Aduro Clean Technologies ROC % Chart

Aduro Clean Technologies Annual Data

Trend

May18

May19

May20

May21

May22

May23

ROC %

Get a 7-Day Free Trial

-75.00

-44.12

-917.22

-1,119.86

-307.30

Aduro Clean Technologies Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															-398.05	-250.18	-202.75	-254.83	-230.68

Aduro Clean Technologies ROC % Calculation

Aduro Clean Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2023 is calculated as:

	ROC % (A: May. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2022 )	+	Invested Capital (A: May. 2023 ))	/ count )
=	-5.831 * ( 1 - 0% )	/	( (0.716	+	3.079)	/ 2 )
=	-5.831	/	1.8975
=	-307.30 %

where

	Invested Capital		(A: May. 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	))
=	3.221	-	0.585	-	( 2.111	-	max(0, 0.662	-	2.582	+	2.111	))
=	0.716

	Invested Capital		(A: May. 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	))
=	7.581	-	0.455	-	( 4.047	-	max(0, 0.517	-	4.904	+	4.047	))
=	3.079

Aduro Clean Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-8.068 * ( 1 - 0% )	/	( (3.363	+	3.632)	/ 2 )
=	-8.068	/	3.4975
=	-230.68 %

where

	Invested Capital		(Q: Nov. 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	))
=	6.265	-	0.544	-	( 2.358	-	max(0, 0.591	-	3.029	+	2.358	))
=	3.363

	Invested Capital		(Q: Feb. 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	))
=	6.164	-	0.376	-	( 2.156	-	max(0, 0.419	-	2.909	+	2.156	))
=	3.632

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

Aduro Clean Technologies (XCNQ:ACT) 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, Aduro Clean Technologies's WACC % is 8.02%. Aduro Clean Technologies's ROC % is -238.26% (calculated using TTM income statement data). Aduro Clean Technologies 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.

Aduro Clean Technologies ROC % Related Terms

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

Aduro Clean Technologies (XCNQ:ACT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Aduro Clean Technologies Inc (XCNQ:ACT) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

ACTHF:USA 9D50:Germany

Address

1086 Modeland Road, Suite 104, Sarnia, ON, CAN, N7S 6L2

Website

https://www.adurocleantech.com

Aduro Clean Technologies Inc is a developer of patented water-based technologies to chemically recycle plastics and transform heavy crude and renewable oils into feedstocks and higher-value fuels. The company's technology activates unique properties of water in a chemistry platform that operates at relatively low temperatures and costs.