indiePub Entertainment (indiePub Entertainment) ROIC % : -709.85% (As of Sep. 2012)

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What is indiePub Entertainment 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 %. indiePub Entertainment's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2012 was -709.85%.

As of today (2024-05-16), indiePub Entertainment's WACC % is 0.00%. indiePub Entertainment's ROIC % is 0.00% (calculated using TTM income statement data). indiePub Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

indiePub Entertainment ROIC % Historical Data

The historical data trend for indiePub Entertainment'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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indiePub Entertainment ROIC % Chart

indiePub Entertainment Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

ROIC %

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-16.90

-59.57

-66.39

-17.62

-195.46

indiePub Entertainment Quarterly Data
	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
ROIC %	Get a 7-Day Free Trial															-226.20	-665.79	-346.77	-625.90	-709.85

Competitive Comparison of indiePub Entertainment's ROIC %

For the Electronic Gaming & Multimedia subindustry, indiePub Entertainment'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.

indiePub Entertainment's ROIC % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, indiePub Entertainment's ROIC % distribution charts can be found below:

* The bar in red indicates where indiePub Entertainment's ROIC % falls into.

indiePub Entertainment ROIC % Calculation

indiePub Entertainment's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2011 is calculated as:

	ROIC % (A: Dec. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2010 )	+	Invested Capital (A: Dec. 2011 ))	/ count )
=	-21.291 * ( 1 - 0% )	/	( (19.306	+	2.48)	/ 2 )
=	-21.291	/	10.893
=	-195.46 %

where

	Invested Capital		(A: Dec. 2010 )
=	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	))
=	31.948	-	12.263	-	( 0.379	-	max(0, 22.029	-	27.775	+	0.379	))
=	19.306

	Invested Capital		(A: Dec. 2011 )
=	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	))
=	2.059	-	10.641	-	( 0.027	-	max(0, 12.919	-	1.857	+	0.027	))
=	2.48

indiePub Entertainment's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2012 is calculated as:

	ROIC % (Q: Sep. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2012 )	+	Invested Capital (Q: Sep. 2012 ))	/ count )
=	-3.496 * ( 1 - 0% )	/	( (0.569	+	0.416)	/ 2 )
=	-3.496	/	0.4925
=	-709.85 %

where

	Invested Capital		(Q: Jun. 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	))
=	1.779	-	4.105	-	( 0.137	-	max(0, 4.535	-	1.64	+	0.137	))
=	0.569

	Invested Capital		(Q: Sep. 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	))
=	1.944	-	3.139	-	( 0.057	-	max(0, 3.358	-	1.747	+	0.057	))
=	0.416

Note: The Operating Income data used here is four times the quarterly (Sep. 2012) data.

indiePub Entertainment (OTCPK:IPUB) 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, indiePub Entertainment's WACC % is 0.00%. indiePub Entertainment'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.

indiePub Entertainment ROIC % Related Terms

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indiePub Entertainment (indiePub Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » indiePub Entertainment Inc (OTCPK:IPUB) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

11258 Cornell Park Drive, Suite 608, Cincinnati, OH, USA, 45242

Website

http://www.indiepubgames.com

indiePub Entertainment Inc is a developer, publisher, and distributor of interactive entertainment software for digital distribution channels.

Executives

David E Smith	10 percent owner	888 LINDA FLORA DRIVE, LOS ANGELES CA 90049
Ray Schaaf	director, officer: President & CEO	C/O MANDALAY MEDIA, INC., 2121 AVENUE OF THE STARS, LOS ANGELES CA 90067
Jay Wolf	director, officer: Secretary	981 LINDA FLORA DRIVE, LOS ANGELES, CA 90049
Barry Regenstein	director	C/O COMMAND SECURITY CORP., RTE 55 LEXINGTON PARK P.O. BOX 340, LAGRANGEVILLE NY 12540
Drew Larner	director	15260 VENTURA BOULEVARD, 20TH FLOOR, SHERMAN OAKS CA 91403
Robert S Ellin	10 percent owner	4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Trinad Capital L.p.	10 percent owner	4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Trinad Management, Llc	10 percent owner	4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES DE 90010
Trinad Capital Master Fund Ltd.	10 percent owner	4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Trinad Advisors Ii, Llc	10 percent owner	4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010

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