Agent Information Software (Agent Information Software) ROC % : 3.05% (As of Dec. 2003)

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What is Agent Information Software 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 %. Agent Information Software's annualized return on capital (ROC %) for the quarter that ended in Dec. 2003 was 3.05%.

As of today (2024-06-06), Agent Information Software's WACC % is 0.00%. Agent Information Software's ROC % is 0.00% (calculated using TTM income statement data). Agent Information Software earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Agent Information Software ROC % Historical Data

The historical data trend for Agent Information Software'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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Agent Information Software ROC % Chart

Agent Information Software Annual Data

Trend

Dec99

Dec00

Dec01

Dec02

Dec03

ROC %

9.14

-17.75

-20.96

4.82

6.48

Agent Information Software Quarterly Data
	Dec99	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03
ROC %	Get a 7-Day Free Trial												14.66	7.08	7.54	6.80	3.05

Agent Information Software ROC % Calculation

Agent Information Software's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2003 is calculated as:

	ROC % (A: Dec. 2003 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2002 )	+	Invested Capital (A: Dec. 2003 ))	/ count )
=	0.37 * ( 1 - 0.65% )	/	( (6.514	+	4.835)	/ 2 )
=	0.367595	/	5.6745
=	6.48 %

where

	Invested Capital		(A: Dec. 2002 )
=	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	))
=	4.719	-	0.255	-	( 0.032	-	max(0, 2.593	-	0.543	+	0.032	))
=	6.514

	Invested Capital		(A: Dec. 2003 )
=	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	))
=	4.164	-	0.084	-	( 0.011	-	max(0, 1.34	-	0.585	+	0.011	))
=	4.835

Agent Information Software's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2003 is calculated as:

	ROC % (Q: Dec. 2003 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2003 )	+	Invested Capital (Q: Dec. 2003 ))	/ count )
=	0.148 * ( 1 - -5.26% )	/	( (5.386	+	4.835)	/ 2 )
=	0.1557848	/	5.1105
=	3.05 %

where

	Invested Capital		(Q: Sep. 2003 )
=	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	))
=	4.18	-	0.075	-	( 0.097	-	max(0, 1.774	-	0.493	+	0.097	))
=	5.386

	Invested Capital		(Q: Dec. 2003 )
=	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	))
=	4.164	-	0.084	-	( 0.011	-	max(0, 1.34	-	0.585	+	0.011	))
=	4.835

Note: The Operating Income data used here is four times the quarterly (Dec. 2003) data.

Agent Information Software (OTCPK:AIFS) 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, Agent Information Software's WACC % is 0.00%. Agent Information Software's ROC % is 0.00% (calculated using TTM income statement data). Agent Information Software 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.

Agent Information Software ROC % Related Terms

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Agent Information Software (Agent Information Software) Business Description

Industry

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Traded in Other Exchanges

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Address

760 East Francis Street, Units C & D, Ontario, CA, USA, 91761

Website

https://www.auto-graphics.com

Agent Information Software Inc provides software products and services that create, manage, publish, and access information content through the Internet or the web. The company offers data automation solutions to customers across multiple industries. Additionally, it also renders software as a service (SaaS), database subscriptions, software maintenance, and support contract services. The Company derives its revenues from various software subscriptions, maintenance and support services, licensing and other non-recurring services.