Life Electric Vehicles Holdings (Life Electric Vehicles Holdings) ROIC % : -56.75% (As of Aug. 2023)

Life Electric Vehicles Holdings ROIC % Chart

Life Electric Vehicles Holdings Annual Data
	Trend	Nov98	Nov99	Nov00	Nov01	Nov02	Nov03	Nov04	Nov05	Nov06	Nov07
ROIC %		Get a 7-Day Free Trial					-52.83	14.55	29.95	-20.50	-13.30

Life Electric Vehicles Holdings Quarterly Data
	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06	Feb07	May07	Aug07	Nov07	Feb08	May08	Aug08	Aug22	Aug23
ROIC %	Get a 7-Day Free Trial															-26.22	-19.29	-34.99	-9.81	-56.75

Competitive Comparison of Life Electric Vehicles Holdings's ROIC %

For the Recreational Vehicles subindustry, Life Electric Vehicles Holdings'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.

Life Electric Vehicles Holdings's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Life Electric Vehicles Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Life Electric Vehicles Holdings's ROIC % falls into.

Life Electric Vehicles Holdings ROIC % Calculation

Life Electric Vehicles Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Nov. 2007 is calculated as:

where

Life Electric Vehicles Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Aug. 2023 is calculated as:

where

Note: The Operating Income data used here is four times the quarterly (Aug. 2023) data.

* 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.

Life Electric Vehicles Holdings  (OTCPK:LFEV) 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, Life Electric Vehicles Holdings's WACC % is -155.84%. Life Electric Vehicles Holdings's ROIC % is -14.19% (calculated using TTM income statement data). Life Electric Vehicles Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Life Electric Vehicles Holdings 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 %, 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.

Life Electric Vehicles Holdings ROIC % Related Terms

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Life Electric Vehicles Holdings (Life Electric Vehicles Holdings) Business Description