Fortitude Group (Fortitude Group) ROC % : -113.29% (As of Sep. 2010)

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What is Fortitude Group 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 %. Fortitude Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2010 was -113.29%.

As of today (2024-05-17), Fortitude Group's WACC % is 0.00%. Fortitude Group's ROC % is 0.00% (calculated using TTM income statement data). Fortitude Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fortitude Group ROC % Historical Data

The historical data trend for Fortitude Group'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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Fortitude Group ROC % Chart

Fortitude Group Annual Data

Trend

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

ROC %

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-250.19

-2,012.59

-274.88

-124.63

-67.59

Fortitude Group 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															-53.92	-68.48	-26.68	-78.81	-113.29

Fortitude Group ROC % Calculation

Fortitude Group'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 )
=	-0.779 * ( 1 - 0% )	/	( (1.177	+	1.128)	/ 2 )
=	-0.779	/	1.1525
=	-67.59 %

where

	Invested Capital		(A: Dec. 2008 )
=	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	))
=	1.154	-	0.822	-	( 0.007	-	max(0, 0.852	-	0.007	+	0.007	))
=	1.177

	Invested Capital		(A: Dec. 2009 )
=	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	))
=	1.056	-	0.49	-	( 0.003	-	max(0, 0.565	-	0.003	+	0.003	))
=	1.128

Fortitude Group'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 )
=	-0.26 * ( 1 - 0% )	/	( (0.158	+	0.301)	/ 2 )
=	-0.26	/	0.2295
=	-113.29 %

where

	Invested Capital		(Q: Jun. 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	))
=	0.093	-	0.443	-	( 0.01	-	max(0, 0.518	-	0.01	+	0.01	))
=	0.158

	Invested Capital		(Q: Sep. 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	))
=	0.226	-	0.459	-	( 0	-	max(0, 0.534	-	0	+	0	))
=	0.301

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

Fortitude Group (OTCPK:FRTD) 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, Fortitude Group's WACC % is 0.00%. Fortitude Group's ROC % is 0.00% (calculated using TTM income statement data). Fortitude Group 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.

Fortitude Group ROC % Related Terms

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Fortitude Group (Fortitude Group) Business Description

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Address

1001 State Street, Erie, PA, USA, 16501

Website

http://www.fortitudegroupinc.com

Fortitude Group Inc is a diversified investment company. It invests in multiple sectors of the economy targeting joint ventures, wholly owned subsidiaries and or majority/minority positions that cross various market segments with the goal of creating a quality company that builds intrinsic value for its shareholders.

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