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Securetech Innovations (Securetech Innovations) ROIC % : -9,028.57% (As of Dec. 2023)


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What is Securetech Innovations ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Securetech Innovations's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -9,028.57%.

As of today (2024-05-14), Securetech Innovations's WACC % is 10.50%. Securetech Innovations's ROIC % is -2329.11% (calculated using TTM income statement data). Securetech Innovations earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Securetech Innovations ROIC % Historical Data

The historical data trend for Securetech Innovations's ROIC % 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.

Securetech Innovations ROIC % Chart

Securetech Innovations Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial -3,050.00 -266.67 -262.65 -1,302.70 -1,840.00

Securetech Innovations Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1,876.19 -1,352.94 -2,422.86 -6,800.00 -9,028.57

Competitive Comparison of Securetech Innovations's ROIC %

For the Auto Parts subindustry, Securetech Innovations's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Securetech Innovations's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Securetech Innovations's ROIC % distribution charts can be found below:

* The bar in red indicates where Securetech Innovations's ROIC % falls into.



Securetech Innovations ROIC % Calculation

Securetech Innovations's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-0.368 * ( 1 - 0% )/( (0.037 + 0.003)/ 2 )
=-0.368/0.02
=-1,840.00 %

where

Securetech Innovations's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-0.316 * ( 1 - 0% )/( (0.004 + 0.003)/ 2 )
=-0.316/0.0035
=-9,028.57 %

where

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

* 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.


Securetech Innovations  (OTCPK:SCTH) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Securetech Innovations's WACC % is 10.50%. Securetech Innovations's ROIC % is -2329.11% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Securetech Innovations ROIC % Related Terms

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Securetech Innovations (Securetech Innovations) Business Description

Traded in Other Exchanges
N/A
Address
2355 Highway 36 West, Suite 400, Roseville, MN, USA, 55113
Securetech Innovations Inc is engaged in developing and marketing personal and automobile security and safety devices and technologies. Its primary source of revenue is from the sale of its Top Kontrol product which is an anti-theft and anti-carjacking system.
Executives
African Resource Group, Inc. 10 percent owner 9353 OUTER BANKS AVE., LAS VEGAS NV 89149
Anthony Vang director, officer: Treasurer/Secretary 2355 HIGHWAY 36 WEST, SUITE 400, ROSEVILLE MN 55113
Lee Kao director, 10 percent owner, officer: President/CEO 2355 HIGHWAY 36 WEST, SUITE 400, ROSEVILLE MN 55113
Abdikarim Farah officer: Vice President 2355 HIGHWAY 36 WEST, STE. 400, ROSEVILLE MN 55113

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