Maiden Lane Jewelry (Maiden Lane Jewelry) ROC % : -29.30% (As of Nov. 2015)

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What is Maiden Lane Jewelry 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 %. Maiden Lane Jewelry's annualized return on capital (ROC %) for the quarter that ended in Nov. 2015 was -29.30%.

As of today (2024-05-15), Maiden Lane Jewelry's WACC % is 0.00%. Maiden Lane Jewelry's ROC % is 0.00% (calculated using TTM income statement data). Maiden Lane Jewelry earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Maiden Lane Jewelry ROC % Historical Data

The historical data trend for Maiden Lane Jewelry'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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Maiden Lane Jewelry ROC % Chart

Maiden Lane Jewelry Annual Data

Trend

May13

May14

May15

ROC %

-22.23

12.14

Maiden Lane Jewelry Quarterly Data
	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15
ROC %	Get a 7-Day Free Trial								22.90	-52.15	1.75	-6.52	-29.30

Maiden Lane Jewelry ROC % Calculation

Maiden Lane Jewelry's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2015 is calculated as:

	ROC % (A: May. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2014 )	+	Invested Capital (A: May. 2015 ))	/ count )
=	0.253 * ( 1 - -62.07% )	/	( (1.906	+	4.851)	/ 2 )
=	0.4100371	/	3.3785
=	12.14 %

where

	Invested Capital		(A: May. 2014 )
=	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	))
=	3.866	-	1.945	-	( 0.015	-	max(0, 3.164	-	3.854	+	0.015	))
=	1.906

	Invested Capital		(A: May. 2015 )
=	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	))
=	6.981	-	2.088	-	( 0.042	-	max(0, 5.201	-	6.932	+	0.042	))
=	4.851

Maiden Lane Jewelry's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2015 is calculated as:

	ROC % (Q: Nov. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2015 )	+	Invested Capital (Q: Nov. 2015 ))	/ count )
=	-0.92 * ( 1 - 6.71% )	/	( (4.434	+	1.424)	/ 2 )
=	-0.858268	/	2.929
=	-29.30 %

where

	Invested Capital		(Q: Aug. 2015 )
=	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	))
=	8.004	-	3.566	-	( 0.004	-	max(0, 6.349	-	7.934	+	0.004	))
=	4.434

	Invested Capital		(Q: Nov. 2015 )
=	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	))
=	7.501	-	6.07	-	( 0.007	-	max(0, 6.407	-	7.401	+	0.007	))
=	1.424

Note: The Operating Income data used here is four times the quarterly (Nov. 2015) data.

Maiden Lane Jewelry (OTCPK:MDNL) 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, Maiden Lane Jewelry's WACC % is 0.00%. Maiden Lane Jewelry's ROC % is 0.00% (calculated using TTM income statement data). Maiden Lane Jewelry 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.

Maiden Lane Jewelry ROC % Related Terms

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Maiden Lane Jewelry (Maiden Lane Jewelry) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Maiden Lane Jewelry Ltd (OTCPK:MDNL) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

64 West 48th Street, Suite 1107, New York, NY, USA, 10036

Website

http://www.myromantique.com

Maiden Lane Jewelry Ltd is engaged in producing engagement rings and other diamond jewelry to retailers across the United States. The company's significant feature consists of ASPIRI collection of bridal engagement rings which includes both a center diamond and setting. In addition, it is also a wholesaler and manufacturer of jewelry which includes pendants, bracelets, and earrings. The company's primary sales contain complete engagement rings with a focus on bridal jewelry featuring uniquely cut stones and settings.

Executives

Michael I Wirth

officer: CEO

1301 AVENUE OF THE AMERICAS, 7TH FLOOR, NEW YORK NY 10019

Maiden Lane Jewelry (Maiden Lane Jewelry) Headlines

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