NoFire Technologies (NoFire Technologies) ROC %

: -24.43% (As of May. 2010)

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

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NoFire Technologies's annualized return on capital (ROC %) for the quarter that ended in May. 2010 was -24.43%.

As of today (2024-04-19), NoFire Technologies's WACC % is 0.00%. NoFire Technologies's ROC % is 0.00% (calculated using TTM income statement data). NoFire Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NoFire Technologies ROC % Historical Data

The historical data trend for NoFire Technologies'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.

NoFire Technologies Annual Data

Trend

Aug00

Aug01

Aug02

Aug03

Aug04

Aug05

Aug06

Aug07

Aug08

Aug09

ROC %

-37.23

-30.09

-19.10

-25.46

-23.36

NoFire Technologies Quarterly Data
	Aug05	Nov05	Feb06	May06	Aug06	Nov06	Feb07	May07	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10
ROC %																-36.97	-20.35	-27.86	-8.24	-24.43

NoFire Technologies ROC % Calculation

NoFire Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2009 is calculated as:

	ROC % (A: Aug. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2008 )	+	Invested Capital (A: Aug. 2009 ))	/ count )
=	-0.944 * ( 1 - 1.19% )	/	( (4.117	+	3.869)	/ 2 )
=	-0.9327664	/	3.993
=	-23.36 %

where

	Invested Capital		(A: Aug. 2008 )
=	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	))
=	0.348	-	1.611	-	( 0.002	-	max(0, 5.691	-	0.311	+	0.002	))
=	4.117

	Invested Capital		(A: Aug. 2009 )
=	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	))
=	0.348	-	1.859	-	( 0.002	-	max(0, 5.691	-	0.311	+	0.002	))
=	3.869

NoFire Technologies's annualized Return on Capital (ROC %) for the quarter that ended in May. 2010 is calculated as:

	ROC % (Q: May. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2010 )	+	Invested Capital (Q: May. 2010 ))	/ count )
=	-1.12 * ( 1 - 0% )	/	( (4.303	+	4.865)	/ 2 )
=	-1.12	/	4.584
=	-24.43 %

where

	Invested Capital		(Q: Feb. 2010 )
=	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	))
=	0.228	-	2.36	-	( 0.006	-	max(0, 6.626	-	0.191	+	0.006	))
=	4.303

	Invested Capital		(Q: May. 2010 )
=	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	))
=	0.273	-	2.523	-	( 0.003	-	max(0, 7.35	-	0.235	+	0.003	))
=	4.865

Note: The Operating Income data used here is four times the quarterly (May. 2010) data.

NoFire Technologies (OTCPK:NFTI) 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, NoFire Technologies's WACC % is 0.00%. NoFire Technologies's ROC % is 0.00% (calculated using TTM income statement data). NoFire Technologies 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.

NoFire Technologies ROC % Related Terms

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

NoFire Technologies (NoFire Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » NoFire Technologies Inc (OTCPK:NFTI) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

5 James Street, South Hackensack, NJ, USA, 07606

Website

https://www.nofire.com

NoFire Technologies Inc is engaged in the development of non-toxic and fire-retardant coatings and textile wrap systems. It serves residential, commercial, industrial, maritime, and military applications.

Executives

Andrew H Tisch

10 percent owner

667 MADISON AVE, NEW YORK NY 10021-8087

NoFire Technologies (NoFire Technologies) Headlines

No Headlines