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Intchains Group (Intchains Group) ROC % : -30.92% (As of Mar. 2024)


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What is Intchains Group 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 %. Intchains Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -30.92%.

As of today (2024-06-04), Intchains Group's WACC % is 10.50%. Intchains Group's ROC % is -24.78% (calculated using TTM income statement data). Intchains Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Intchains Group ROC % Historical Data

The historical data trend for Intchains Group'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.

Intchains Group ROC % Chart

Intchains Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
- 45.92 880.82 213.50 -15.99

Intchains Group Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.98 -46.90 -42.82 16.58 -30.92

Intchains Group ROC % Calculation

Intchains Group'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 )
=-7.267 * ( 1 - 24.62% )/( (32.536 + 35.985)/ 2 )
=-5.4778646/34.2605
=-15.99 %

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))
=136.714 - 2.018 - ( 102.16 - max(0, 2.754 - 119.337+102.16))
=32.536

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))
=137.146 - 1.956 - ( 99.205 - max(0, 3.944 - 111.694+99.205))
=35.985

Intchains Group'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 )
=-19.2 * ( 1 - 41.02% )/( (35.985 + 37.262)/ 2 )
=-11.32416/36.6235
=-30.92 %

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))
=137.146 - 1.956 - ( 99.205 - max(0, 3.944 - 111.694+99.205))
=35.985

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))
=132.605 - 2.186 - ( 93.157 - max(0, 2.381 - 102.59+93.157))
=37.262

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

Intchains Group  (NAS:ICG) 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, Intchains Group's WACC % is 10.50%. Intchains Group's ROC % is -24.78% (calculated using TTM income statement data). Intchains Group 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.

Intchains Group ROC % Related Terms

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Intchains Group (Intchains Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Intchains Group Ltd (NAS:ICG) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
No.333 Haiyang No.1 Road, 9th Floor, A Block, Lingang Science and Technology Park, Pudong New Area, Shanghai, CHN, 201306
Website
https://www.intchains.com
Intchains Group Ltd provides integrated solutions consisting of high-performance ASIC chips and ancillary software and hardware for blockchain applications. Its ASIC chips are designed for several key blockchain algorithms including Blake2bsha3, sha512MD160, Cryptonight V4, Eaglesong, and Blake2s. The company has built a proprietary technology platform named Xihe Platform, which allows the development of a wide range of ASIC chips with high efficiency and scalability. It designs its ASIC chips in-house, which enables it to leverage proprietary silicon data to deliver products reflecting the latest technological developments.