Zoom Technologies (Zoom Technologies) ROC % : -1.01% (As of Mar. 2014)

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What is Zoom Technologies 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 %. Zoom Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2014 was -1.01%.

As of today (2024-06-09), Zoom Technologies's WACC % is 0.00%. Zoom Technologies's ROC % is 0.00% (calculated using TTM income statement data). Zoom Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zoom Technologies ROC % Historical Data

The historical data trend for Zoom Technologies'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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Zoom Technologies ROC % Chart

Zoom Technologies Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC %

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11.78

16.20

-3.71

-5.72

-1.63

Zoom Technologies Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
ROC %	Get a 7-Day Free Trial															-1.15	-0.47	-0.46	-2.91	-1.01

Zoom Technologies ROC % Calculation

Zoom Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-2.882 * ( 1 - -4.82% )	/	( (206.46	+	163.908)	/ 2 )
=	-3.0209124	/	185.184
=	-1.63 %

where

	Invested Capital		(A: Dec. 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	))
=	212.839	-	6.371	-	( 0.008	-	max(0, 156.753	-	188.73	+	0.008	))
=	206.46

	Invested Capital		(A: 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	))
=	168.283	-	4.338	-	( 0.037	-	max(0, 155.198	-	157.052	+	0.037	))
=	163.908

Zoom Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2014 is calculated as:

	ROC % (Q: Mar. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Mar. 2014 ))	/ count )
=	-1.66 * ( 1 - -0.31% )	/	( (163.908	+	164.702)	/ 2 )
=	-1.665146	/	164.305
=	-1.01 %

where

	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	))
=	168.283	-	4.338	-	( 0.037	-	max(0, 155.198	-	157.052	+	0.037	))
=	163.908

	Invested Capital		(Q: Mar. 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	))
=	170.818	-	4.293	-	( 15.706	-	max(0, 158.142	-	159.965	+	15.706	))
=	164.702

Note: The Operating Income data used here is four times the quarterly (Mar. 2014) data.

Zoom Technologies (OTCPK:ZTNO) 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, Zoom Technologies's WACC % is 0.00%. Zoom Technologies's ROC % is 0.00% (calculated using TTM income statement data). Zoom Technologies 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.

Zoom Technologies ROC % Related Terms

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Zoom Technologies (Zoom Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Zoom Technologies Inc (OTCPK:ZTNO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sanlitun SOHO, Building A, 11th Floor, No. 8 Worker Stadium North Road, Chaoyang District, Beijing, CHN, 10027

Website

http://www.zoom.com

Zoom Technologies Inc designs, produces, markets, sales and supports broadband and dial-up modems, Voice over Internet Protocol or VoIP products and services, Bluetooth wireless products, and other communication-related products. It is engaged in mobile platform video game development, manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry, GPS equipment, and related software products.

Executives

Anthony K Chan	director, officer: Chief Financial Officer	32108 ALVARADO BLVD., UNIT 138, UNION CITY CA 94587
Frank Blase Manning	director	C/O ZOOM TELEPHONICS INC, 207 SOUTH STREET, BOSTON MA 02110
Peter Robin Kramer	director
Joseph Donovan	director	C/O ZOOM TECHNOLOGIES INC, 207 SOUTH STREET, BOSTON MA 02111
J Ronald Woods	director
Bernard Furman	director
Terry Manning	officer: VP Sales & Marketing
Deena M Randall	officer: VP of Operations
Robert A Crist	officer: CFO

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