Avatar Ventures (Avatar Ventures) ROCE % : -6.63% (As of Apr. 2012)

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What is Avatar Ventures ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Avatar Ventures's annualized ROCE % for the quarter that ended in Apr. 2012 was -6.63%.

Avatar Ventures ROCE % Historical Data

The historical data trend for Avatar Ventures's ROCE % 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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Avatar Ventures ROCE % Chart

Avatar Ventures Annual Data

Trend

Jul08

Jul09

Jul10

Jul11

ROCE %

-188.94

Avatar Ventures Quarterly Data
	Oct07	Jan08	Apr08	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12
ROCE %	Get a 7-Day Free Trial														-7.14	-237.48	-124.59	-94.92	-6.63

Avatar Ventures ROCE % Calculation

Avatar Ventures's annualized ROCE % for the fiscal year that ended in Jul. 2011 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2011 )		(A: Jul. 2010 )		(A: Jul. 2011 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2011 )		(A: Jul. 2010 )		(A: Jul. 2011 )
	=	-0.222	/	( ( (0 - 0.022)	+	(0.288 - 0.031) )	/ 2 )
	=	-0.222	/	( (-0.022	+	0.257)	/ 2 )
	=	-0.222	/	0.1175
	=	-188.94 %

Avatar Ventures's ROCE % of for the quarter that ended in Apr. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2012 )		(Q: Jan. 2012 )		(Q: Apr. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2012 )		(Q: Jan. 2012 )		(Q: Apr. 2012 )
	=	-0.012	/	( ( (0.242 - 0.06)	+	(0.241 - 0.061) )	/ 2 )
	=	-0.012	/	( ( 0.182	+	0.18 )	/ 2 )
	=	-0.012	/	0.181
	=	-6.63 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2012) EBIT data.

Avatar Ventures (GREY:ATAR) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Avatar Ventures ROCE % Related Terms

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Avatar Ventures (Avatar Ventures) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Avatar Ventures Corp (GREY:ATAR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

27281 Las Ramblas, Suite 200, Mission Viejo, CA, USA, 92691

Website

http://www.avatarventurescorp.com

Avatar Ventures Corp intends to be a developer of aftermarket electronic accessories for consumer motor vehicles.

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