Blount International (Blount International) ROC % : -13.94% (As of Dec. 2015)

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What is Blount International 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 %. Blount International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was -13.94%.

As of today (2024-04-28), Blount International's WACC % is 0.00%. Blount International's ROC % is 0.00% (calculated using TTM income statement data). Blount International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Blount International ROC % Historical Data

The historical data trend for Blount International'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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Blount International ROC % Chart

Blount International Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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11.73

7.10

1.48

6.94

-6.61

Blount International Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
ROC %	Get a 7-Day Free Trial															-0.73	4.46	-27.30	13.36	-13.94

Blount International ROC % Calculation

Blount International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-46.766 * ( 1 - 15.26% )	/	( (644.92	+	553.783)	/ 2 )
=	-39.6295084	/	599.3515
=	-6.61 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	802.093	-	129.919	-	( 27.254	-	max(0, 145.059	-	364.265	+	27.254	))
=	644.92

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	693.126	-	113.394	-	( 25.949	-	max(0, 129.132	-	339.371	+	25.949	))
=	553.783

Blount International's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	-97.628 * ( 1 - 18.61% )	/	( (586.615	+	553.783)	/ 2 )
=	-79.4594292	/	570.199
=	-13.94 %

where

	Invested Capital		(Q: Sep. 2015 )
=	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	))
=	731.385	-	119.667	-	( 25.103	-	max(0, 135.155	-	364.206	+	25.103	))
=	586.615

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	693.126	-	113.394	-	( 25.949	-	max(0, 129.132	-	339.371	+	25.949	))
=	553.783

Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data.

Blount International (NYSE:BLT) 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, Blount International's WACC % is 0.00%. Blount International's ROC % is 0.00% (calculated using TTM income statement data). Blount International 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.

Blount International ROC % Related Terms

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Blount International (Blount International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Blount International Inc (NYSE:BLT) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Website

http://www.blount.com

Blount International Inc is a global industrial company. The Company designs, manufactures, and markets equipment, replacement and component parts, and accessories for professionals and consumers in select end-markets under its proprietary brand names. It also manufactures and markets such items to original equipment manufacturers ("OEMs") under private label brand names. The Company specializes in manufacturing cutting parts and equipment used in forestry, lawn, and garden; farming, ranching, and agricultural; and construction applications. It also purchases products manufactured by other suppliers that are aligned with the markets it serves and market them, typically under one of its brands, through its global sales and distribution network. Its products are sold in more than 110 countries and approximately 54% of its 2013 sales were shipped to customers outside of the United States of America ("U.S."). The Company operates in two primary business segments: the Forestry, Lawn, and Garden ("FLAG") segment and the Farm Ranch and Agriculture ("FRAG") segment. The FLAG segment manufactures and markets cutting chain, guide bars, and drive sprockets for chain saw use, and lawnmower and edger blades for outdoor power equipment. The FLAG segment also purchases replacement parts and accessories from other manufacturers and markets them, primarily under its brands, to its FLAG customers through its global sales and distribution network. The FLAG segment currently includes the operations of the Company that have historically served the forestry, lawn, and garden markets, as well as KOX GmbH and related companies (collectively "KOX"), and a portion of Finalame SA, which includes PBL SA and related companies (collectively "PBL"). The Company's FRAG segment designs, manufactures, assembles and markets attachments and implements for tractors in a variety of mowing, cutting, clearing, material handling, landscaping and grounds maintenance applications, as well as log splitters, post-hole diggers, self-propelled lawnmowers, attachments for off-highway construction equipment applications, and other general purpose tractor attachments. In addition, the FRAG segment manufactures a variety of attachment cutting blade parts. The FRAG segment also purchases replacement parts and accessories from other manufacturers that it markets to its FRAG customers through its sales and distribution network. The FRAG segment currently includes the operations of SP Companies, Inc. and SpeeCo, Inc. (collectively "SpeeCo"), GenWoods HoldCo, LLC and its wholly-owned subsidiary, Woods Equipment Company (collectively "Woods/TISCO"), and a portion of PBL. The Company also operates a concrete cutting and finishing equipment business that is reported within the Corporate and Other category. This business manufactures and markets diamond cutting chain and assembles and markets concrete cutting chain saws for the construction and utility markets.

Executives

Andrew C Clarke	director	430 AIRPORT ROAD, GREENVILLIE TN 37745
Nelda J Connors	director	BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Max L Lukens	director	2801 POST OAK BLVD, SUITE 600, HOUSTON TX 77056
Ronald Cami	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Harold E Layman	director	C/O GRAFTECH INTERNATIONAL LTD., 12900 SNOW ROAD, PARMA OH 44130
R Eugene Cartledge	director	C/O GRAFTECH INTERNATIONAL LTD., 12900 SNOW ROAD, PARMA OH 44130
Robert D Kennedy	director
Lehman Brothers Holdings Inc	10 percent owner	1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Eliot M Fried	director	37 WEST 12TH STREET APT 11G, NEW YORK NY 10011
William A Shutzer	director	C/O TIFFANY & CO LEGAL DEPT, 727 FIFTH AVE, NEW YORK NY 10022