Q Lotus Holdings (Q Lotus Holdings) ROC % : -19.75% (As of Dec. 2013)

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What is Q Lotus Holdings 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 %. Q Lotus Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2013 was -19.75%.

As of today (2024-05-25), Q Lotus Holdings's WACC % is 0.00%. Q Lotus Holdings's ROC % is 0.00% (calculated using TTM income statement data). Q Lotus Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Q Lotus Holdings ROC % Historical Data

The historical data trend for Q Lotus Holdings'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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Q Lotus Holdings ROC % Chart

Q Lotus Holdings Annual Data

Trend

Sep07

Sep08

Sep09

Mar11

Mar12

ROC %

-557.14

-630.77

-3,300.00

-920.14

-176.43

Q Lotus Holdings Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
ROC %	Get a 7-Day Free Trial															-28.47	-73.43	-39.02	-16.95	-19.75

Q Lotus Holdings ROC % Calculation

Q Lotus Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2012 is calculated as:

	ROC % (A: Mar. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2011 )	+	Invested Capital (A: Mar. 2012 ))	/ count )
=	-1.594 * ( 1 - 0% )	/	( (0.291	+	1.516)	/ 2 )
=	-1.594	/	0.9035
=	-176.43 %

where

	Invested Capital		(A: Mar. 2011 )
=	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	))
=	0.148	-	0.267	-	( 0.031	-	max(0, 0.467	-	0.057	+	0.031	))
=	0.291

	Invested Capital		(A: Mar. 2012 )
=	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	))
=	0.038	-	0.485	-	( 0	-	max(0, 1.966	-	0.003	+	0	))
=	1.516

Q Lotus Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2013 is calculated as:

	ROC % (Q: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2013 )	+	Invested Capital (Q: Dec. 2013 ))	/ count )
=	-0.928 * ( 1 - 0% )	/	( (4.522	+	4.876)	/ 2 )
=	-0.928	/	4.699
=	-19.75 %

where

	Invested Capital		(Q: Sep. 2013 )
=	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	))
=	0.714	-	1.31	-	( 0.01	-	max(0, 5.153	-	0.035	+	0.01	))
=	4.522

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	0.679	-	1.566	-	( 0	-	max(0, 5.763	-	0	+	0	))
=	4.876

Note: The Operating Income data used here is four times the quarterly (Dec. 2013) data.

Q Lotus Holdings (OTCPK:QLTS) 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, Q Lotus Holdings's WACC % is 0.00%. Q Lotus Holdings's ROC % is 0.00% (calculated using TTM income statement data). Q Lotus Holdings 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.

Q Lotus Holdings ROC % Related Terms

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Q Lotus Holdings (Q Lotus Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Q Lotus Holdings Inc (OTCPK:QLTS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.qlotuspe.com

Q Lotus Holdings, Inc. is a diversified financial services holding company which provides financing and acquires growing companies in which it believes its management participation in operations can create additional value.

Executives

Gary A Rosenberg	director, officer: CEO and President	500 N. DEARBORN SUITE 605 CHICAGO IL 60654
Robert H Daskal	director	C/O OLYMPIC CASCADE FINANCIAL CORP 875 NORTH MICHIGAN AVENUE, STE. 1560 CHICAGO IL 60611

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