Vestin Realty Mortgage II (Vestin Realty Mortgage II) ROC %

: -84.56% (As of Sep. 2016)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Vestin Realty Mortgage II's annualized return on capital (ROC %) for the quarter that ended in Sep. 2016 was -84.56%.

As of today (2024-04-16), Vestin Realty Mortgage II's WACC % is 0.00%. Vestin Realty Mortgage II's ROC % is 0.00% (calculated using TTM income statement data). Vestin Realty Mortgage II earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vestin Realty Mortgage II ROC % Historical Data

The historical data trend for Vestin Realty Mortgage II'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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Vestin Realty Mortgage II Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

-2.73

1.07

-4.73

-10.49

-13.22

Vestin Realty Mortgage II Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
ROC %																-22.71	-9.64	-10.39	-49.83	-84.56

Vestin Realty Mortgage II ROC % Calculation

Vestin Realty Mortgage II'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 )
=	-7.298 * ( 1 - 0% )	/	( (60.915	+	49.513)	/ 2 )
=	-7.298	/	55.214
=	-13.22 %

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	))
=	69.216	-	2.055	-	( 8.002	-	max(0, 2.055	-	8.301	+	8.002	))
=	60.915

	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	))
=	54.368	-	6.193	-	( 4.49	-	max(0, 6.193	-	4.855	+	4.49	))
=	49.513

Vestin Realty Mortgage II's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	-8.352 * ( 1 - 0% )	/	( (9.415	+	10.34)	/ 2 )
=	-8.352	/	9.8775
=	-84.56 %

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	))
=	17.658	-	7.259	-	( 7.959	-	max(0, 7.879	-	8.863	+	7.959	))
=	9.415

	Invested Capital		(Q: Sep. 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	))
=	15.816	-	8.25	-	( 5.618	-	max(0, 8.87	-	6.096	+	5.618	))
=	10.34

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

Vestin Realty Mortgage II (OTCPK:VRTB) 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, Vestin Realty Mortgage II's WACC % is 0.00%. Vestin Realty Mortgage II's ROC % is 0.00% (calculated using TTM income statement data). Vestin Realty Mortgage II 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.

Vestin Realty Mortgage II ROC % Related Terms

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Vestin Realty Mortgage II (Vestin Realty Mortgage II) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Vestin Realty Mortgage II Inc (OTCPK:VRTB) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9130 W. Post Road, Suite 130, Las Vegas, NV, USA, 89148

Website

http://www.vestinrealtymortgage2.com

Vestin Realty Mortgage II Inc is active in the financial services domain. The company invests in loans secured by real estate through deeds of trust or mortgages. It also invests in, acquires, manages and sells the real property and acquires entities involved in the ownership or management of the real property. Vestin functions through two segments; Investments in Real Estate Loans, and Investments in equity securities of publicly traded companies.