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Alternative Investment (Alternative Investment) ROC % : -34.53% (As of Jun. 2020)


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What is Alternative Investment 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 %. Alternative Investment's annualized return on capital (ROC %) for the quarter that ended in Jun. 2020 was -34.53%.

As of today (2024-05-31), Alternative Investment's WACC % is 0.00%. Alternative Investment's ROC % is 0.00% (calculated using TTM income statement data). Alternative Investment earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Alternative Investment ROC % Historical Data

The historical data trend for Alternative Investment'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.

* Premium members only.

Alternative Investment ROC % Chart

Alternative Investment Annual Data
Trend Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -53.28 -53.60 -34.23 -101.76 -71.83

Alternative Investment Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -61.20 -85.50 -49.18 -41.72 -34.53

Alternative Investment ROC % Calculation

Alternative Investment's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2019 is calculated as:

ROC % (A: Sep. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2018 ) + Invested Capital (A: Sep. 2019 ))/ count )
=-0.343 * ( 1 - 0% )/( (0.394 + 0.561)/ 2 )
=-0.343/0.4775
=-71.83 %

where

Alternative Investment's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2020 is calculated as:

ROC % (Q: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2020 ) + Invested Capital (Q: Jun. 2020 ))/ count )
=-0.216 * ( 1 - 0% )/( (0.614 + 0.637)/ 2 )
=-0.216/0.6255
=-34.53 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2020) 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.


Alternative Investment  (OTCPK:AIKO) 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, Alternative Investment's WACC % is 0.00%. Alternative Investment's ROC % is 0.00% (calculated using TTM income statement data). Alternative Investment 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.


Alternative Investment ROC % Related Terms

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Alternative Investment (Alternative Investment) Business Description

Traded in Other Exchanges
N/A
Address
408 Boonesville Bend, Argyle, TX, USA, 76226
Alternative Investment Corp is a shell company.
Executives
Unerkov Con other: No position PO BOX 1171, NORTH ADELAIDE SA C3 5006
Bin He other: no position RM 1001, NO.10 BUILDING, YUMIN VILLAGE HEPING ROAD, LUOHU DISTRICT SHENZHEN F4 0000
Ning He director, officer: Secretary ROOM 1001, NO.10 BUILDING, YUMIN VILLAGE HEPING ROAD, LUOHU DISTRICT SHENZHEN F4 0000000

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