AVVAA World Health Care Products (AVVAA World Health Care Products) ROC % : -28.77% (As of May. 2007)

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What is AVVAA World Health Care Products 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 %. AVVAA World Health Care Products's annualized return on capital (ROC %) for the quarter that ended in May. 2007 was -28.77%.

As of today (2024-06-10), AVVAA World Health Care Products's WACC % is 0.00%. AVVAA World Health Care Products's ROC % is 0.00% (calculated using TTM income statement data). AVVAA World Health Care Products earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AVVAA World Health Care Products ROC % Historical Data

The historical data trend for AVVAA World Health Care Products'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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AVVAA World Health Care Products ROC % Chart

AVVAA World Health Care Products Annual Data

Trend

May00

May01

May02

May03

May04

May05

May06

May07

ROC %

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-128.47

-185.17

-193.90

-35.79

-28.77

AVVAA World Health Care Products Semi-Annual Data
	May00	May01	May02	May03	May04	May05	May06	May07
ROC %	Get a 7-Day Free Trial			-128.47	-185.17	-193.90	-35.79	-28.77

AVVAA World Health Care Products ROC % Calculation

AVVAA World Health Care Products's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2007 is calculated as:

	ROC % (A: May. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2006 )	+	Invested Capital (A: May. 2007 ))	/ count )
=	-3.165 * ( 1 - % )	/	( (13.14	+	8.863)	/ 2 )
=	-3.165	/	11.0015
=	-28.77 %

where

	Invested Capital		(A: May. 2006 )
=	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	))
=	1.712	-	1.019	-	( 0.627	-	max(0, 13.447	-	1	+	0.627	))
=	13.14

	Invested Capital		(A: May. 2007 )
=	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	))
=	0.637	-	6.273	-	( 0.009	-	max(0, 14.552	-	0.053	+	0.009	))
=	8.863

AVVAA World Health Care Products's annualized Return on Capital (ROC %) for the quarter that ended in May. 2007 is calculated as:

	ROC % (Q: May. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2006 )	+	Invested Capital (Q: May. 2007 ))	/ count )
=	-3.165 * ( 1 - % )	/	( (13.14	+	8.863)	/ 2 )
=	-3.165	/	11.0015
=	-28.77 %

where

	Invested Capital		(Q: May. 2006 )
=	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	))
=	1.712	-	1.019	-	( 0.627	-	max(0, 13.447	-	1	+	0.627	))
=	13.14

	Invested Capital		(Q: May. 2007 )
=	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	))
=	0.637	-	6.273	-	( 0.009	-	max(0, 14.552	-	0.053	+	0.009	))
=	8.863

Note: The Operating Income data used here is one times the annual (May. 2007) data.

AVVAA World Health Care Products (OTCPK:AVVH) 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, AVVAA World Health Care Products's WACC % is 0.00%. AVVAA World Health Care Products's ROC % is 0.00% (calculated using TTM income statement data). AVVAA World Health Care Products 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.

AVVAA World Health Care Products ROC % Related Terms

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AVVAA World Health Care Products (AVVAA World Health Care Products) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » AVVAA World Health Care Products Inc (OTCPK:AVVH) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1001 West Loop South, Suite 803, Houston, TX, USA, 77027

Website

https://www.avvaaworldhealth.com

AVVAA World Health Care Products Inc operates through its wholly-owned subsidiary, GoldQuest Capital, Inc. The company is a real estate lending company that specializes in the syndication of first lien, and asset-backed real estate mortgages in the residential, commercial, and industrial sectors.

Executives

Mark E Alden	director, officer: V.P. Research and Development	PO BOX 204, BRYN ATHYN PA 19009
James W Haney	officer: V. P. MFG/Dist. Consultant	21 ERINDALE DR, MARLTON NJ 08053
Barbara Smith	officer: Executive VP Sales & Marketing	PO BOX 370, FALKLAND BC A1 V0E 1W0
John Stewart Farley	director, 10 percent owner, officer: President and CEO	PO BOX 335, 3018 SCHAEFFER ROAD, FAULKLAND A1 V0E 1W0
Farley Lorie Dale Campbell	10 percent owner, officer: V.P. Animal Care Products	PO BOX 335, 3018 SCHAEFFER ROAD, FAULKLAND A1 V0E 1W0
Ronald James Reynolds	officer: V.P. Manufacturing Dist./Can	9015 RUSSET DRIVE, COLDSTREAM A1 V1B 2B7
Charles Tait Austin	director, officer: CFO and Secretary	13503 SUMNE LANE, VERNON, BRITISH COLUMBIA, A1 00000

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