American Biltrite (American Biltrite) ROC % : -3.88% (As of Dec. 2011)

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What is American Biltrite 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 %. American Biltrite's annualized return on capital (ROC %) for the quarter that ended in Dec. 2011 was -3.88%.

As of today (2024-05-25), American Biltrite's WACC % is 0.00%. American Biltrite's ROC % is 0.00% (calculated using TTM income statement data). American Biltrite earns returns that do not match up to its cost of capital. It will destroy value as it grows.

American Biltrite ROC % Historical Data

The historical data trend for American Biltrite'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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American Biltrite ROC % Chart

American Biltrite Annual Data

Trend

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

ROC %

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-23.91

-3.27

-1.40

2.37

-1.28

American Biltrite Quarterly Data
	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11
ROC %	Get a 7-Day Free Trial															8.04	0.69	-2.81	-0.07	-3.88

American Biltrite ROC % Calculation

American Biltrite's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2011 is calculated as:

	ROC % (A: Dec. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2010 )	+	Invested Capital (A: Dec. 2011 ))	/ count )
=	-1.131 * ( 1 - -12.68% )	/	( (100.158	+	99.039)	/ 2 )
=	-1.2744108	/	99.5985
=	-1.28 %

where

	Invested Capital		(A: Dec. 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	))
=	123.23	-	19.805	-	( 3.267	-	max(0, 31.819	-	66.893	+	3.267	))
=	100.158

	Invested Capital		(A: Dec. 2011 )
=	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	))
=	120.4	-	17.982	-	( 3.379	-	max(0, 33.937	-	65.453	+	3.379	))
=	99.039

American Biltrite's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2011 is calculated as:

	ROC % (Q: Dec. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2011 )	+	Invested Capital (Q: Dec. 2011 ))	/ count )
=	-2.164 * ( 1 - -80.79% )	/	( (102.632	+	99.039)	/ 2 )
=	-3.9122956	/	100.8355
=	-3.88 %

where

	Invested Capital		(Q: Sep. 2011 )
=	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	))
=	133.011	-	27.392	-	( 2.987	-	max(0, 44.783	-	77.346	+	2.987	))
=	102.632

	Invested Capital		(Q: Dec. 2011 )
=	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	))
=	120.4	-	17.982	-	( 3.379	-	max(0, 33.937	-	65.453	+	3.379	))
=	99.039

Note: The Operating Income data used here is four times the quarterly (Dec. 2011) data.

American Biltrite (OTCPK:ABLT) 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, American Biltrite's WACC % is 0.00%. American Biltrite's ROC % is 0.00% (calculated using TTM income statement data). American Biltrite 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.

American Biltrite ROC % Related Terms

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American Biltrite (American Biltrite) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » American Biltrite Inc (OTCPK:ABLT) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

57 River Street, Suite 302, Wellesley Hills, MA, USA, 02481-2097

Website

http://www.ambilt.com

American Biltrite Inc is engaged in providing flooring products, tape products, jewelry, and rubber products globally. It offers all the products from its operating divisions, Tape Division, K&M Associates L.P., and American Biltrite (Canada) Ltd. The Tape products division provides specialized pressure-sensitive tapes, films, and protective sheeting. American Biltrite (Canada) Ltd manufactures and distributes commercial flooring and performance sheet rubber throughout North America. K&M Associates L.P. supplies fashion jewelry and sells branded and private-label products to a wide range of retail customers.

Executives

Mark N Kaplan	director	C/O AUTOWEB, INC. 6410 OAK CANYON, SUITE 250 IRVINE CA 92618
Mark S Newman	director	DRS TECHNOLOGIES, INC., 5 SYLVAN WAY, PARSIPPANY NJ 07054
Kenneth I Watchmaker	director
Frederick H Joseph	director	93 ABBOT STREET, ANDOVER MA 01810

American Biltrite (American Biltrite) Headlines

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