Consumer Automotive Finance (Consumer Automotive Finance) ROIC % : -418.25% (As of Jun. 2023)

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What is Consumer Automotive Finance ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Consumer Automotive Finance's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -418.25%.

As of today (2024-05-17), Consumer Automotive Finance's WACC % is 43.16%. Consumer Automotive Finance's ROIC % is -418.25% (calculated using TTM income statement data). Consumer Automotive Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Consumer Automotive Finance ROIC % Historical Data

The historical data trend for Consumer Automotive Finance's ROIC % 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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Consumer Automotive Finance ROIC % Chart

Consumer Automotive Finance Annual Data

Trend

Dec03

Dec04

Jun06

Jun07

Jun08

Jun09

Jun10

Jun22

Jun23

ROIC %

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-24.57

-15.27

-7.58

-1.04

-418.25

Consumer Automotive Finance Semi-Annual Data
	Dec03	Dec04	Jun06	Jun07	Jun08	Jun09	Jun10	Jun21	Jun22	Jun23
ROIC %	Get a 7-Day Free Trial					-15.27	-7.58	-	-48.51	-418.25

Competitive Comparison of Consumer Automotive Finance's ROIC %

For the Credit Services subindustry, Consumer Automotive Finance's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Consumer Automotive Finance's ROIC % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Consumer Automotive Finance's ROIC % distribution charts can be found below:

* The bar in red indicates where Consumer Automotive Finance's ROIC % falls into.

Consumer Automotive Finance ROIC % Calculation

Consumer Automotive Finance's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-0.527 * ( 1 - 0% )	/	( (0.134	+	0.118)	/ 2 )
=	-0.527	/	0.126
=	-418.25 %

where

	Invested Capital		(A: Jun. 2022 )
=	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	))
=	0.026	-	0.079	-	( 0	-	max(0, 0.188	-	0.001	+	0	))
=	0.134

	Invested Capital		(A: Jun. 2023 )
=	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	))
=	0.026	-	0.093	-	( 0	-	max(0, 0.186	-	0.001	+	0	))
=	0.118

Consumer Automotive Finance's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.527 * ( 1 - 0% )	/	( (0.134	+	0.118)	/ 2 )
=	-0.527	/	0.126
=	-418.25 %

where

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	0.026	-	0.079	-	( 0	-	max(0, 0.188	-	0.001	+	0	))
=	0.134

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	0.026	-	0.093	-	( 0	-	max(0, 0.186	-	0.001	+	0	))
=	0.118

Note: The Operating Income data used here is one times the annual (Jun. 2023) data.

Consumer Automotive Finance (OTCPK:CAFI) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Consumer Automotive Finance's WACC % is 43.16%. Consumer Automotive Finance's ROIC % is -418.25% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Consumer Automotive Finance ROIC % Related Terms

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Consumer Automotive Finance (Consumer Automotive Finance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Consumer Automotive Finance Inc (OTCPK:CAFI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

746 North Drive, STE A, Melbourne, FL, USA, 32934

Website

http://www.cafius.com

Consumer Automotive Finance Inc is an indirect automotive financial services company that focuses on servicing the sub-prime market. It has developed a criteria-based system, which has been effective in evaluating deal structure as well as a consumer's ability to pay for an automobile loan. The company provides financing solutions for buying Cars and Trucks and also provides a wide range of credit profiles through dealers in Nevada and soon Arizona and Utah, as well as online through the Dealer Loan programs.

Executives

Scott Eugene Miller	officer: CEO	2239 N. HAYDEN RD., SUITE 100, SCOTTSDALE AZ 85257
Jamie Kerr	director, 10 percent owner, officer: President	2925 N. 67TH PLACE, SCOTTSDALE AZ 85251
John Shaffer	director, officer: Treasurer	2925 N. 67TH PLACE, SCOTTSDALE AZ 85251