Epiq Systems (Epiq Systems) ROIC % : -24.37% (As of Jun. 2016)

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What is Epiq Systems ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Epiq Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2016 was -24.37%.

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

Epiq Systems ROIC % Historical Data

The historical data trend for Epiq Systems's ROIC % 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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Epiq Systems ROIC % Chart

Epiq Systems Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROIC %

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2.82

4.47

3.00

0.39

-6.45

Epiq Systems Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROIC %	Get a 7-Day Free Trial															0.36	-28.89	8.41	23.46	-24.37

Competitive Comparison of Epiq Systems's ROIC %

For the Information Technology Services subindustry, Epiq Systems's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Epiq Systems's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Epiq Systems's ROIC % distribution charts can be found below:

* The bar in red indicates where Epiq Systems's ROIC % falls into.

Epiq Systems ROIC % Calculation

Epiq Systems's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROIC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	28.075 * ( 1 - 255.81% )	/	( (625.113	+	730.853)	/ 2 )
=	-43.7436575	/	677.983
=	-6.45 %

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	))
=	727.924	-	48.585	-	( 54.226	-	max(0, 64.354	-	194.522	+	54.226	))
=	625.113

	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	))
=	823.897	-	65.424	-	( 27.62	-	max(0, 84.899	-	197.043	+	27.62	))
=	730.853

Epiq Systems's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROIC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	24.86 * ( 1 - 836.15% )	/	( (755.936	+	746.133)	/ 2 )
=	-183.00689	/	751.0345
=	-24.37 %

where

	Invested Capital		(Q: Mar. 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	))
=	829.424	-	53.265	-	( 20.223	-	max(0, 73.244	-	210.937	+	20.223	))
=	755.936

	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	))
=	822.557	-	59.128	-	( 17.296	-	max(0, 76.137	-	210.279	+	17.296	))
=	746.133

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

Epiq Systems (NAS:EPIQ) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Epiq Systems's WACC % is 0.00%. Epiq Systems's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Epiq Systems ROIC % Related Terms

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Epiq Systems (Epiq Systems) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.epiqsystems.com

Epiq Systems Inc was incorporated in the State of Missouri on July 13, 1988, and on July 15, 1988 acquired all of the assets of an unrelated predecessor corporation. The Company is a provider of integrated technology solutions for the legal profession. The Company's solutions streamline the administration of bankruptcy, litigation, financial transactions and regulatory compliance matters. It offers managed technology solutions for eDiscovery, document review, legal notification, claims administration and controlled disbursement of funds. Its clients include law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, and financial institutions. The Company's business is organized into two reportable segments: the Technology segment and the Bankruptcy and Settlement Administration segment. The Company's Technology segment provides eDiscovery managed services and technology solutions comprised of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and the litigation departments of law firms. The Company's eDataMatrix software analyzes filters, deduplicates and produces documents for review. The Company's customers are corporations that use its products and services cooperatively with their legal counsel to manage the eDiscovery process for litigation, investigations, anti-trust filings and regulatory matters. Produced documents are made available mainly through a hosted environment utilizing its proprietary software DocuMatrix and third-party software which allows for efficient attorney review and data requests. Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Technology segment, eDiscovery competes with companies such as, Kroll Ontrack, FTI Consulting, Inc., Huron Consulting Group Inc., The Dolan Company, Symantec Corporation, Recommind, Inc., Xerox and Autonomy. The Company's Bankruptcy and Settlement Administration segment, bankruptcy services competes with companies such as, Bankruptcy Management Solutions, Inc., which is a provider in Chapter 7 bankruptcy market. While in Chapter 11 bankruptcy market, the Company competes with Kurtzman Carson Consultants LLC and The Garden City Group, Inc. In Chapter 13 market, the Company's main competitor is Bankruptcy Software Specialists, LLC. The Company is subject to

Executives

Gregory M Share	director	THREE FIRST NATIONAL PLZ, SUITE 3800, CHICAGO IL 60602
Tjon Sien Fat Karin - Joyce	officer: EVP & CFO	501 KANSAS AVENUE, KANSAS CITY KS 66105
Kevin L Robert	director	501 KANSAS AVENUE, KANSAS CITY KS 66105
Terry Matlack	director	233 W 47TH ST, KANSAS CITY MO 64112