GOAT Industries (XCNQ:GOAT) ROIC % : -14.81% (As of Dec. 2023)

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What is GOAT Industries 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 %. GOAT Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -14.81%.

As of today (2024-05-27), GOAT Industries's WACC % is 6.54%. GOAT Industries's ROIC % is -24.88% (calculated using TTM income statement data). GOAT Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GOAT Industries ROIC % Historical Data

The historical data trend for GOAT Industries'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.

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GOAT Industries ROIC % Chart

GOAT Industries Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROIC %

-56.16

-66.74

-36.99

GOAT Industries Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial								-56.38	-21.89	-20.00	-28.46	-14.81

Competitive Comparison of GOAT Industries's ROIC %

For the Asset Management subindustry, GOAT Industries'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.

GOAT Industries's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, GOAT Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where GOAT Industries's ROIC % falls into.

GOAT Industries ROIC % Calculation

GOAT Industries'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 )
=	-0.543 * ( 1 - 0% )	/	( (2.323	+	0.613)	/ 2 )
=	-0.543	/	1.468
=	-36.99 %

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	))
=	2.228	-	0.289	-	( 0.002	-	max(0, 0.428	-	0.044	+	0.002	))
=	2.323

	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	))
=	0.297	-	0.419	-	( 0.007	-	max(0, 0.76	-	0.025	+	0.007	))
=	0.613

GOAT Industries'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 )
=	-0.344 * ( 1 - 0% )	/	( (4.034	+	0.613)	/ 2 )
=	-0.344	/	2.3235
=	-14.81 %

where

	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	))
=	3.908	-	0.413	-	( 0.1	-	max(0, 0.663	-	0.124	+	0.1	))
=	4.034

	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	))
=	0.297	-	0.419	-	( 0.007	-	max(0, 0.76	-	0.025	+	0.007	))
=	0.613

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

GOAT Industries (XCNQ:GOAT) 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, GOAT Industries's WACC % is 6.54%. GOAT Industries's ROIC % is -24.88% (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.

GOAT Industries ROIC % Related Terms

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GOAT Industries (XCNQ:GOAT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » GOAT Industries Ltd (XCNQ:GOAT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

BGTTF:USA 26B:Germany

Address

810 - 789 West Pender Street, Vancouver, BC, CAN, V6C 1H2

Website

https://www.goatindustries.co

GOAT Industries Ltd is a venture capital platform focused on identifying, sponsoring and incubating companies driven by environmental, social and governance values, while operating in the blue economy. It invests in private businesses in the plant-based protein, functional foods, food technology, and fermented foods sectors. The company plans to generate returns on its investments through go-public transactions, mergers or acquisitions, and the other liquidity events of its investee companies.