GURUFOCUS.COM » STOCK LIST » Technology » Software » Bell Industries Inc (GREY:BLLI) » Definitions » ROC %

BLLI (Bell Industries) ROC % : 50.69% (As of Sep. 2010)


View and export this data going back to 2008. Start your Free Trial

What is Bell Industries 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 %. Bell Industries's annualized return on capital (ROC %) for the quarter that ended in Sep. 2010 was 50.69%.

As of today (2024-10-31), Bell Industries's WACC % is 0.00%. Bell Industries's ROC % is 0.00% (calculated using TTM income statement data). Bell Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bell Industries ROC % Historical Data

The historical data trend for Bell Industries'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.

Bell Industries ROC % Chart

Bell Industries Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.47 -43.18 -36.65 -6.26 -7.21

Bell Industries Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 33.33 -23.86 -44.61 28.95 50.69

Bell Industries ROC % Calculation

Bell Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2009 is calculated as:

ROC % (A: Dec. 2009 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2008 ) + Invested Capital (A: Dec. 2009 ))/ count )
=-0.784 * ( 1 - 0.37% )/( (11.414 + 10.241)/ 2 )
=-0.7810992/10.8275
=-7.21 %

where

Bell Industries's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2010 is calculated as:

ROC % (Q: Sep. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2010 ) + Invested Capital (Q: Sep. 2010 ))/ count )
=8.476 * ( 1 - 2.6% )/( (14.001 + 18.573)/ 2 )
=8.255624/16.287
=50.69 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2010) 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.


Bell Industries  (GREY:BLLI) 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, Bell Industries's WACC % is 0.00%. Bell Industries's ROC % is 0.00% (calculated using TTM income statement data). Bell Industries 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.


Bell Industries ROC % Related Terms

Thank you for viewing the detailed overview of Bell Industries's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Bell Industries Business Description

Traded in Other Exchanges
N/A
Address
4400 W 96th Street, Indianapolis, IN, USA, 46268
Bell Industries Inc is an information technology managed services and solutions company. It provides transformational Next Generation Digital Workplace and Infrastructure Management Solutions to large and mid-market enterprises, as well as the public sector. It also offers End User Computing, Infrastructure Management and Cloud Computing, IT Lifecycle Services and Enterprise Mobility Management.
Executives
Newcastle Partners L P other: see attached explanation 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Mark E Schwarz director, 10 percent owner, officer: Chairman, other: see attached explanation 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Newcastle Capital Group Llc other: see attached explanation 5420 LYNDON B. JOHNSON FREEWAY, STE 1400, DALLAS TX 75240
Newcastle Capital Management Lp other: see attached explanation 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Clinton J Coleman director, other: see attached explanation C/O NEWCASTLE CAPITAL MANAGEMENT, L.P., 200 CRESCENT COURT, SUITE 1400, DALLAS TX 75201
Dale Booth director

Bell Industries Headlines

No Headlines