Carson Development (Carson Development) ROIC % : -54.98% (As of Sep. 2002)

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What is Carson Development 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 %. Carson Development's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2002 was -54.98%.

As of today (2024-06-17), Carson Development's WACC % is 0.00%. Carson Development's ROIC % is 0.00% (calculated using TTM income statement data). Carson Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Carson Development ROIC % Historical Data

The historical data trend for Carson Development'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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Carson Development ROIC % Chart

Carson Development Annual Data

Trend

Dec99

Dec00

Dec01

ROIC %

-3.92

-60.32

-1,608.67

Carson Development Quarterly Data
	Mar99	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02
ROIC %	Get a 7-Day Free Trial							-812.17	-4,218.89	-298.76	-229.34	-54.98

Competitive Comparison of Carson Development's ROIC %

For the Real Estate - Development subindustry, Carson Development'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.

Carson Development's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Carson Development's ROIC % distribution charts can be found below:

* The bar in red indicates where Carson Development's ROIC % falls into.

Carson Development ROIC % Calculation

Carson Development's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2001 is calculated as:

	ROIC % (A: Dec. 2001 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2000 )	+	Invested Capital (A: Dec. 2001 ))	/ count )
=	-2.598 * ( 1 - % )	/	( (0.219	+	0.104)	/ 2 )
=	-2.598	/	0.1615
=	-1,608.67 %

where

	Invested Capital		(A: Dec. 2000 )
=	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	))
=	0.262	-	0.064	-	( 0.066	-	max(0, 0.087	-	0.066	+	0.066	))
=	0.219

	Invested Capital		(A: Dec. 2001 )
=	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	))
=	0.003	-	0.131	-	( 0	-	max(0, 0.232	-	0	+	0	))
=	0.104

Carson Development's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2002 is calculated as:

	ROIC % (Q: Sep. 2002 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2002 )	+	Invested Capital (Q: Sep. 2002 ))	/ count )
=	-2.588 * ( 1 - 0% )	/	( (4.035	+	5.379)	/ 2 )
=	-2.588	/	4.707
=	-54.98 %

where

	Invested Capital		(Q: Jun. 2002 )
=	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	))
=	3.308	-	2.435	-	( 1.946	-	max(0, 5.4	-	2.238	+	1.946	))
=	4.035

	Invested Capital		(Q: Sep. 2002 )
=	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	))
=	3.778	-	2.513	-	( 0.003	-	max(0, 6.506	-	2.392	+	0.003	))
=	5.379

Note: The Operating Income data used here is four times the quarterly (Sep. 2002) data.

Carson Development (OTCPK:CDVM) 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, Carson Development's WACC % is 0.00%. Carson Development's ROIC % is 0.00% (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.

Carson Development ROIC % Related Terms

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Carson Development (Carson Development) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Carson Development Corp (OTCPK:CDVM) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

6917 West 135th Street, Suite B-29, Overland Park, KS, USA, 66223

Website

http://www.carsondevelopmentinc.com

Carson Development Corp is a Real Estate company. It includes the purchase of raw ground, developing the ground, constructing homes-apartment complexes-shopping centers-businesses, and then managing the property once it is complete.

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