Virtutone Networks (Virtutone Networks) ROCE % : 30.69% (As of Oct. 2014)

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What is Virtutone Networks 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. Virtutone Networks's annualized ROCE % for the quarter that ended in Oct. 2014 was 30.69%.

Virtutone Networks ROCE % Historical Data

The historical data trend for Virtutone Networks'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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Virtutone Networks ROCE % Chart

Virtutone Networks Annual Data

Trend

Mar06

Mar07

Mar08

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

ROCE %

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-74.69

-81.98

54.91

-71.97

8.33

Virtutone Networks Quarterly Data
	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14
ROCE %	Get a 7-Day Free Trial															227.95	-9.76	10.44	59.43	30.69

Virtutone Networks ROCE % Calculation

Virtutone Networks's annualized ROCE % for the fiscal year that ended in Jan. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2014 )		(A: Jan. 2013 )		(A: Jan. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2014 )		(A: Jan. 2013 )		(A: Jan. 2014 )
	=	0.236	/	( ( (1.571 - 0.742)	+	(9.43 - 4.596) )	/ 2 )
	=	0.236	/	( (0.829	+	4.834)	/ 2 )
	=	0.236	/	2.8315
	=	8.33 %

Virtutone Networks's ROCE % of for the quarter that ended in Oct. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2014 )		(Q: Jul. 2014 )		(Q: Oct. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2014 )		(Q: Jul. 2014 )		(Q: Oct. 2014 )
	=	1.852	/	( ( (19.769 - 13.945)	+	(30.747 - 24.501) )	/ 2 )
	=	1.852	/	( ( 5.824	+	6.246 )	/ 2 )
	=	1.852	/	6.035
	=	30.69 %

(1) Note: The EBIT data used here is four times the quarterly (Oct. 2014) EBIT data.

Virtutone Networks (OTCPK:VRTWF) 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.

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Virtutone Networks (Virtutone Networks) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Virtutone Networks Inc (OTCPK:VRTWF) » Definitions » ROCE %

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http://www.virtutone.com

Virtutone Networks, Inc. is incorporated under the laws of the Province of Alberta. The Company is a provider of Voice over Internet Protocol, Fax over Internet Protocol, and related phone services to business and residential customers.

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