Tonner-One World Holdings (Tonner-One World Holdings) ROC % : -22.74% (As of Jun. 2016)

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What is Tonner-One World 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 %. Tonner-One World Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was -22.74%.

As of today (2024-06-03), Tonner-One World Holdings's WACC % is 0.00%. Tonner-One World Holdings's ROC % is 0.00% (calculated using TTM income statement data). Tonner-One World Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tonner-One World Holdings ROC % Historical Data

The historical data trend for Tonner-One World 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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Tonner-One World Holdings ROC % Chart

Tonner-One World Holdings Annual Data

Trend

Dec99

Dec00

Dec01

Dec02

Dec03

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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-40.88

-229.82

-183.68

-117.03

-25.18

Tonner-One World Holdings Quarterly Data
	Jun04	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															-9.75	-7.89	-25.64	-15.78	-22.74

Tonner-One World Holdings ROC % Calculation

Tonner-One World Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-2.277 * ( 1 - 0% )	/	( (4.299	+	13.788)	/ 2 )
=	-2.277	/	9.0435
=	-25.18 %

where

	Invested Capital		(A: Dec. 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	))
=	0.429	-	2.158	-	( 0.001	-	max(0, 6.379	-	0.351	+	0.001	))
=	4.299

	Invested Capital		(A: Dec. 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	))
=	0.124	-	3.909	-	( 0.006	-	max(0, 17.639	-	0.066	+	0.006	))
=	13.788

Tonner-One World Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	-2.064 * ( 1 - 0% )	/	( (10.389	+	7.762)	/ 2 )
=	-2.064	/	9.0755
=	-22.74 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	0.137	-	4.178	-	( 0.004	-	max(0, 14.514	-	0.084	+	0.004	))
=	10.389

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	0.058	-	4.734	-	( 0.003	-	max(0, 12.447	-	0.009	+	0.003	))
=	7.762

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Tonner-One World Holdings (OTCPK:TONR) 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, Tonner-One World Holdings's WACC % is 0.00%. Tonner-One World Holdings's ROC % is 0.00% (calculated using TTM income statement data). Tonner-One World 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.

Tonner-One World Holdings ROC % Related Terms

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Tonner-One World Holdings (Tonner-One World Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Tonner-One World Holdings Inc (OTCPK:TONR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6725 South Fry Road, Suite 321, Katy, TX, USA, 77494

Website

https://www.tonnerow.com

Tonner-One World Holdings Inc is an emerging-growth company operating under business expansion called the Digital Commerce Collective. The DCC is a comprehensive product and service development model focused on four key areas of growth, namely, Crypto and Forex technology, interactive commerce, proprietary trading firm initiatives, and IP licensing for entertainment and Metaverse applications.

Executives

Edward L Cahill	other: See General Remarks and FN 3	C/O HLM VENTURE PARTNERS, 800 SOUTH STREET, SUITE 200, WALTHAM MA 02453
David L Warnock	director	500 EAST PRATT STREET, SUITE 1200, BALTIMORE MD 21202
Donald W Hughes	other: See General Remarks and FN3	500 EAST PRATT STREET, SUITE 1200, BALTIMORE MD 21202