Critical Infrastructure Technologies (XCNQ:CTTT) ROC % : -2.67% (As of Mar. 2024)

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What is Critical Infrastructure 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 %. Critical Infrastructure Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -2.67%.

As of today (2024-06-09), Critical Infrastructure Technologies's WACC % is 9.63%. Critical Infrastructure Technologies's ROC % is -174.61% (calculated using TTM income statement data). Critical Infrastructure Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Critical Infrastructure Technologies ROC % Historical Data

The historical data trend for Critical Infrastructure 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.

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Critical Infrastructure Technologies ROC % Chart

Critical Infrastructure Technologies Annual Data

Trend

Jun21

Jun22

Jun23

ROC %

-6.85

-352.57

Critical Infrastructure Technologies Quarterly Data
	Jun22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial			-21.54	-448.33	-13.92	-9.38	-2.67

Critical Infrastructure Technologies ROC % Calculation

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

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-11.938 * ( 1 - 0% )	/	( (2.624	+	4.148)	/ 2 )
=	-11.938	/	3.386
=	-352.57 %

where

	Invested Capital		(A: Jun. 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	))
=	2.467	-	0.444	-	( 0.15	-	max(0, 1.651	-	1.05	+	0.15	))
=	2.624

	Invested Capital		(A: 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	))
=	4.142	-	0.983	-	( 0.394	-	max(0, 1.755	-	0.766	+	0.394	))
=	4.148

Critical Infrastructure Technologies'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 )
=	-0.128 * ( 1 - 0% )	/	( (4.322	+	5.254)	/ 2 )
=	-0.128	/	4.788
=	-2.67 %

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	))
=	4.031	-	1.139	-	( 0.022	-	max(0, 1.864	-	0.434	+	0.022	))
=	4.322

	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	))
=	4.269	-	0.974	-	( 0.148	-	max(0, 2.107	-	0.148	+	0.148	))
=	5.254

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

Critical Infrastructure Technologies (XCNQ:CTTT) 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, Critical Infrastructure Technologies's WACC % is 9.63%. Critical Infrastructure Technologies's ROC % is -174.61% (calculated using TTM income statement data). Critical Infrastructure 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.

Critical Infrastructure Technologies ROC % Related Terms

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Critical Infrastructure Technologies (XCNQ:CTTT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Critical Infrastructure Technologies Ltd (XCNQ:CTTT) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1066 West Hastings Street, Suite 2600, Vancouver, BC, CAN, V6E 3X1

Website

https://www.citech.com.au

Critical Infrastructure Technologies Ltd designs and develops rapidly deployable infrastructure and power systems to support life and mission-critical applications. The company's product set is a range of rapidly deployable, high-capacity communications platforms called the NEXUS 16 and CiNet. The NEXUS 16 is a fully integrated, high-capacity communications platform that can be quickly and safely transported to remote and hostile locations and be fully operational and transmitted in under 60 minutes. CiNet was built to support the Nexus products and provide seamless integration into the operator's own Network Management Systems.

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