Global InterConnection Group (XAMS:CABLE) ROC % : -1,788.64% (As of Dec. 2023)

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What is Global InterConnection 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 %. Global InterConnection Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -1,788.64%.

As of today (2024-11-13), Global InterConnection Group's WACC % is 4.05%. Global InterConnection Group's ROC % is -544.54% (calculated using TTM income statement data). Global InterConnection Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global InterConnection Group ROC % Historical Data

The historical data trend for Global InterConnection 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.

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Global InterConnection Group ROC % Chart

Global InterConnection Group Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

-10.30

-452.69

Global InterConnection Group Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23
ROC %	-1.24	-18.22	-57.94	-1,788.64

Global InterConnection Group ROC % Calculation

Global InterConnection 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 )
=	-20.722 * ( 1 - -0.01% )	/	( (7.086	+	2.07)	/ 2 )
=	-20.7240722	/	4.578
=	-452.69 %

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	))
=	1.011	-	0.369	-	( 0.025	-	max(0, 6.535	-	0.091	+	0.025	))
=	7.086

	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	))
=	2.717	-	2.366	-	( 0.932	-	max(0, 3.557	-	1.838	+	0.932	))
=	2.07

Global InterConnection Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-38.738 * ( 1 - -0.01% )	/	( (2.262	+	2.07)	/ 2 )
=	-38.7418738	/	2.166
=	-1,788.64 %

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	))
=	3.298	-	0.269	-	( 0.767	-	max(0, 0.275	-	3.298	+	0.767	))
=	2.262

	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	))
=	2.717	-	2.366	-	( 0.932	-	max(0, 3.557	-	1.838	+	0.932	))
=	2.07

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Global InterConnection Group (XAMS:CABLE) 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, Global InterConnection Group's WACC % is 4.05%. Global InterConnection Group's ROC % is -544.54% (calculated using TTM income statement data). Global InterConnection 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.

Global InterConnection Group ROC % Related Terms

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Global InterConnection Group Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

10 Lefebvre Street, First Floor, Saint Peter Port, GGY, GY1 2PE

Website

https://www.globalinterconnectiongroup.com

Global InterConnection Group Ltd along with its subsidiaries, is a platform for the manufacturing, development, operation, and ownership of interconnectors and other power transmission assets, with three interlocking divisions: a portfolio of interconnector operating assets, and projects, High Voltage Direct Current cable manufacturing to supply grid upgrades and other interconnector projects; and ancillary services, such as commissioning and overseeing the design, planning and operational management for grids and interconnections. It is in the development phase of establishing a cable factory and the production and installation of a subsea cable between the UK and Iceland.

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