Sigma Additive Solutions (Sigma Additive Solutions) ROC % : -195.71% (As of Sep. 2023)

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What is Sigma Additive Solutions 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 %. Sigma Additive Solutions's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -195.71%.

As of today (2024-06-09), Sigma Additive Solutions's WACC % is 9.89%. Sigma Additive Solutions's ROC % is -285.20% (calculated using TTM income statement data). Sigma Additive Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sigma Additive Solutions ROC % Historical Data

The historical data trend for Sigma Additive Solutions'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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Sigma Additive Solutions ROC % Chart

Sigma Additive Solutions Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-460.82

-734.57

-432.35

-531.77

-443.47

Sigma Additive Solutions Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-439.34	-345.78	-312.08	-238.77	-195.71

Sigma Additive Solutions ROC % Calculation

Sigma Additive Solutions's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-8.672 * ( 1 - 0% )	/	( (1.562	+	2.349)	/ 2 )
=	-8.672	/	1.9555
=	-443.47 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	13.841	-	0.832	-	( 11.447	-	max(0, 0.981	-	12.684	+	11.447	))
=	1.562

	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	))
=	5.704	-	0.509	-	( 2.846	-	max(0, 0.629	-	4.274	+	2.846	))
=	2.349

Sigma Additive Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-3.6 * ( 1 - 0% )	/	( (2.15	+	1.529)	/ 2 )
=	-3.6	/	1.8395
=	-195.71 %

where

	Invested Capital		(Q: 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	))
=	2.934	-	0.416	-	( 0.368	-	max(0, 0.543	-	1.491	+	0.368	))
=	2.15

	Invested Capital		(Q: Sep. 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	))
=	2.838	-	0.753	-	( 0.556	-	max(0, 0.864	-	1.428	+	0.556	))
=	1.529

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

Sigma Additive Solutions (NAS:SGLBW) 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, Sigma Additive Solutions's WACC % is 9.89%. Sigma Additive Solutions's ROC % is -285.20% (calculated using TTM income statement data). Sigma Additive Solutions 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.

Sigma Additive Solutions ROC % Related Terms

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Sigma Additive Solutions (Sigma Additive Solutions) Business Description

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Address

3900 Paseo del Sol, Santa Fe, NM, USA, 87507

Website

https://www.sigmaadditive.com

Sigma Additive Solutions Inc is a leading provider of in-process quality assurance (IPQA) software to the additive manufacturing industry. Sigma specializes in the development and commercialization of real-time monitoring and analytics solutions known as PrintRite3D for 3D metal and polymer advanced manufacturing technologies. Its principal business activities include the development of its In-Process Quality Assurance (IPQA) suite of technologies and the commercialization of both its IPQA and materials-related suite of technologies, with its focus on three-dimensional printing (3DP) industry.