Global Sources (Global Sources) ROC % : 0.00% (As of Dec. 2016)

View and export this data going back to 2000. Start your Free Trial

What is Global Sources 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 Sources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2016 was 0.00%.

As of today (2024-04-26), Global Sources's WACC % is 0.00%. Global Sources's ROC % is 0.00% (calculated using TTM income statement data). Global Sources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global Sources ROC % Historical Data

The historical data trend for Global Sources'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.

Global Sources ROC % Chart

Global Sources Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

Get a 7-Day Free Trial

13.00

12.08

6.11

9.51

7.81

Global Sources Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Jun16	Dec16
ROC %	Get a 7-Day Free Trial															25.86	-7.72	31.74	-17.67	-

Global Sources ROC % Calculation

Global Sources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	16.319 * ( 1 - -7.82% )	/	( (231.804	+	218.96)	/ 2 )
=	17.5951458	/	225.382
=	7.81 %

where

	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	))
=	262.087	-	25.556	-	( 70.356	-	max(0, 100.821	-	105.548	+	70.356	))
=	231.804

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	271.452	-	21.532	-	( 99.983	-	max(0, 98.982	-	129.942	+	99.983	))
=	218.96

Global Sources's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	0 * ( 1 - 0% )	/	( (225.306	+	218.96)	/ 2 )
=	0	/	222.133
=	0.00 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	269.005	-	25.496	-	( 79.476	-	max(0, 100.753	-	118.956	+	79.476	))
=	225.306

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	271.452	-	21.532	-	( 99.983	-	max(0, 98.982	-	129.942	+	99.983	))
=	218.96

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

Global Sources (NAS:GSOL) 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 Sources's WACC % is 0.00%. Global Sources's ROC % is 0.00% (calculated using TTM income statement data). Global Sources 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 Sources ROC % Related Terms

Thank you for viewing the detailed overview of Global Sources's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Global Sources (Global Sources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Global Sources Ltd (NAS:GSOL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.globalsources.com

Global Sources Ltd was incorporated in 1970. The Company is a B2B media company that provides information and integrated marketing services, with a focus on the Greater China market. The primary service includes creating and hosting marketing websites that present suppliers' product and company information in a consistent and searchable manner on GlobalSources.com. It also offers banner advertising and publish print and digital trade magazines, which consist of product advertisements from suppliers and independent editorial reports.The Company provides B2B media products and services to stimulate and streamline the marketing and sourcing processes of trade.

Global Sources (Global Sources) Headlines

From GuruFocus

Global Sources LTD and Heidrick & Struggles International: Negative Enterprise Value Screen for Net Nets:

By guruek Jae Jun • 03-13-2009

Global Sources: A Pure Value Play?

By delories delories • 03-10-2015

Finally, An Undervalued Chinese Small-Cap That's Real

By Ryan Vanzo rvanzo • 03-12-2015

Make 25% in 2 Months with this Special Situation

By Jae Jun Jae Jun • 03-19-2014