Crailar Technologies (Crailar Technologies) ROC % : -37.74% (As of Jun. 2015)

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What is Crailar Technologies ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Crailar Technologies's annualized return on capital (ROC %) for the quarter that ended in Jun. 2015 was -37.74%.

As of today (2024-04-29), Crailar Technologies's WACC % is 0.00%. Crailar Technologies's ROC % is 0.00% (calculated using TTM income statement data). Crailar Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Crailar Technologies ROC % Historical Data

The historical data trend for Crailar Technologies's ROC % 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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Crailar Technologies ROC % Chart

Crailar Technologies Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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-933.83

-262.78

-78.67

-78.58

-40.25

Crailar Technologies Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
ROC %	Get a 7-Day Free Trial															-37.44	-26.92	-37.82	-40.89	-37.74

Crailar Technologies ROC % Calculation

Crailar Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	-6.764 * ( 1 - 1.38% )	/	( (20.197	+	12.953)	/ 2 )
=	-6.6706568	/	16.575
=	-40.25 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	21.49	-	4.72	-	( 1.193	-	max(0, 6.079	-	2.652	+	1.193	))
=	20.197

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	16.197	-	3.241	-	( 1.196	-	max(0, 5.085	-	5.088	+	1.196	))
=	12.953

Crailar Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2015 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	-4.504 * ( 1 - 0% )	/	( (12.09	+	11.776)	/ 2 )
=	-4.504	/	11.933
=	-37.74 %

where

	Invested Capital		(Q: Mar. 2015 )
=	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	))
=	14.023	-	3.159	-	( 0.862	-	max(0, 4.707	-	3.481	+	0.862	))
=	12.09

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	12.534	-	2.988	-	( 0.098	-	max(0, 4.371	-	2.141	+	0.098	))
=	11.776

Note: The Operating Income data used here is four times the quarterly (Jun. 2015) data.

Crailar Technologies (OTCPK:CRLRQ) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Crailar Technologies's WACC % is 0.00%. Crailar Technologies's ROC % is 0.00% (calculated using TTM income statement data). Crailar Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Crailar Technologies ROC % Related Terms

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Crailar Technologies (Crailar Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Crailar Technologies Inc (OTCPK:CRLRQ) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

4420 Chatterton Way, Suite 305, Victoria, BC, CAN, V8X 5J2

Website

http://www.crailar.com

Crailar Technologies Inc is involved in the business of technological development and of natural sustainable fibers. The company develops and produces fibers and patented processing technologies targeted at natural yarn and textile industries and also pulp and composites industries. It markets and sells its products under the Crailar brand name. The firm's products include fiber and shive and seed products.

Executives

Theodore R Sanders	officer: CFO and Treasurer	17150 SOUTH MARGAY AVENUE, CARSON CA 90746
Marxe Austin W & Greenhouse David M	10 percent owner	C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Jeremy K Jones	director	870 N. COMMONS DR AURORA IL 60504

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